Bowdren v. Prudential Insurance

51 Pa. D. & C.4th 402, 2001 Pa. Dist. & Cnty. Dec. LEXIS 297
CourtPennsylvania Court of Common Pleas, Philadelphia County
DecidedJanuary 24, 2001
Docketno. 2505
StatusPublished

This text of 51 Pa. D. & C.4th 402 (Bowdren v. Prudential Insurance) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Philadelphia County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bowdren v. Prudential Insurance, 51 Pa. D. & C.4th 402, 2001 Pa. Dist. & Cnty. Dec. LEXIS 297 (Pa. Super. Ct. 2001).

Opinion

HERRON, J.,

INTRODUCTION

The issue presented in this motion to compel appointment of arbitrators is whether arbitration should be [404]*404compelled where the relevant arbitration provision sets forth limitations to arbitration that are contradictory and thus, ambiguous. For the reasons set forth below, this court concludes that the ambiguities in the policy must be interpreted against the insurer/drafter of the policy.

FACTUAL BACKGROUND

Petitioner William Bowdren, a Philadelphia police officer, was injured on March 23, 2000, while a passenger in an unmarked police car that was struck by an uninsured motorist.1 At the time of the accident, Mr. Bowdren was performing surveillance operations in plainclothes. The vehicle Mr. Bowdren occupied was from a fleet of 4 or 5 unmarked vehicles that were supplied to officers on surveillance duty.2

Mr. Bowdren subsequently sought to recover under-insurance motorist benefits pursuant to a policy that was issued to his mother by Prudential Property and Casualty Insurance Company (PRUPAC).3 In fact, he is listed [405]*405on the declarations page of the policy under the heading “Licensed operator(s) in your household.” Petitioner’s exhibit A; PRUPAC’s exhibit B. When PRUPAC refused coverage, Mr. Bowdren requested arbitration pursuant to the policy. When this request was denied, he filed a motion to compel arbitration.

PRUPAC objects to this motion arguing, inter alia, that Mr. Bowdren is not an insured because of an exclusion within the policy that would not cover him “while occupying a vehicle regularly supplied for his use and which he was, in fact, using in the course and scope of his employment at the time of the alleged accident.” Response, ¶5. PRUPAC therefore argues that Mr. Bowdren’s claim should not be submitted to arbitration. Mr. Bowdren counters that the critical language concerning the non-owned vehicle is ambiguous and must therefore be construed against the insurer. Petitioner’s response memorandum at 1-2. This court notes, in addition, that the policy language as to the scope of arbitration is ambiguous and contradictory. It is this language that determines the narrow, procedural issue before this court: whether arbitration should be compelled. It is this language that must be construed against the insurer for the reasons set forth below.

Legal Analysis

The standards for review of a motion to compel arbitration are well established. When presented with a contested petition to compel arbitration, a court’s role is limited to determining “(1) whether an agreement to arbitrate was entered into and (2) whether the dispute involved comes within the ambit of the arbitration provision.” Messa v. State Farm Insurance Co., 433 Pa. Super. 594, 597, 641 A.2d 1167, 1168 (1994). See also, [406]*406Santiago v. State Farm Insurance Co., 453 Pa. Super. 343, 346, 683 A.2d 1216, 1217-18 (1996). A motion to compel arbitration should not be denied “on the ground that the controversy lacks merit or bona fides or on the ground that no fault or basis for the controversy sought to be arbitrated has been shown.” Borgia v. Prudential Insurance Co., 561 Pa. 434, 750 A.2d 843, 846 (2000) (quoting 42 Pa.C.S. §7304(e)).4 The frame of reference of any analysis, therefore, must be the actual language of the relevant arbitration provision.

The PRUPAC policy in the present case contains the following provision for arbitration:

“Arbitration
“If we and an insured do not agree:
“(1) Whether that person is entitled to recover damages resulting from the negligence of the owner or operator of an uninsured motor vehicle, or
“(2) As to the amount of compensatory damages; “Either party may make a written demand for arbitration. In this event, each party will select an arbitrator from the county where the insured lives. The two arbitrators will select a third arbitrator from the same county. If they cannot agree within 30 days, either party may request selection from a judge of a common pleas court having jurisdiction where the insured claiming coverage lives; or by a judge in the federal district court whose jurisdiction includes the county where the insured claiming coverage lives.
[407]*407“Each party will:
“(1) Pay the expenses it incurs; and
“(2) Bear the expenses of the third party equally.
“Arbitration will be conducted in the county where the insured lives. Local rules of procedure and evidence will apply to the entire arbitration process.” PRUPAC policy, part 4 at 5-6.

In addition to the above description of the scope of arbitration, the PRUPAC policy also sets forth a limitation on arbitrable issues:

“We will not arbitrate questions of coverage of law as to whether a person making a claim is covered under the policy, or is excluded under the policy. All disputes affecting the scope of coverage, the amount of coverage, a person’s right or eligibility to make a claim, or the insureds selection of coverage, will be determined by the court in the county where the insured lives at the time the demand for arbitration is made; or a federal district court whose jurisdiction includes the county where the insured lives.” PRUPAC policy, part 4 at 6.

In interpreting an insurance policy, the objective is to discern the intent of the parties as expressed in the written language. Hamilton Bank v. INA, 384 Pa. Super. 11, 15, 557 A.2d 747, 750 (1989). The first paragraph of this arbitration provision outlines a broad scope for arbitration that is quite similar to the language the Pennsylvania Supreme Court analyzed in Brennan v. General Accident Fire & Assurance Corp., 524 Pa. 542, 574 A.2d 580 (1990). The PRUPAC policy provides that arbitration may be requested:

“If we and an insured do not agree:
“(1) Whether that person is entitled to recover damages resulting from the negligence of the owner or operator of an uninsured motor vehicle, or
[408]*408“(2) As to the amount of compensatory damages.” PRUPAC policy, part 4 at 5.

The policy the Pennsylvania Supreme Court analyzed in Brennan provided:

“If we and the covered person disagree whether that person is legally entitled to recover damages from the owners or operator of an underinsured motor vehicle, or do not agree as to the amount of damages, either party may make a written demand for arbitration.” Brennan, 524 Pa. at 548, 574 A.2d at 582.

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Bluebook (online)
51 Pa. D. & C.4th 402, 2001 Pa. Dist. & Cnty. Dec. LEXIS 297, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bowdren-v-prudential-insurance-pactcomplphilad-2001.