Carter v. State Farm Mutual Automobile Ins. Co.

224 So. 2d 802
CourtDistrict Court of Appeal of Florida
DecidedJuly 1, 1969
DocketL-352
StatusPublished
Cited by13 cases

This text of 224 So. 2d 802 (Carter v. State Farm Mutual Automobile Ins. Co.) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carter v. State Farm Mutual Automobile Ins. Co., 224 So. 2d 802 (Fla. Ct. App. 1969).

Opinion

224 So.2d 802 (1969)

King S. CARTER et Ux., Petitioners,
v.
STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY, a Foreign Corporation, Respondent.

No. L-352.

District Court of Appeal of Florida. First District.

July 1, 1969.

*803 J.B. Hodges, Lake City, for petitioners.

J. Richard Moore, of Mathews, Osborne & Ehrlich, Jacksonville, for respondent.

WIGGINTON, Chief Judge.

Petitioners seek review by certiorari of a judgment rendered by the Circuit Court which reversed the judgment rendered in favor of petitioners by the Small Claims Court of Columbia County. Petitioners contend that the judgment appealed constitutes a departure from the essential requirements of law thereby requiring that it be quashed and the judgment of the Small Claims Court reinstated.

In order to understand the issue involved, it is necessary to detail the facts from which the issue arises. Petitioners sustained injuries as a result of a collision between their vehicle and one negligently operated by an uninsured motorist. Petitioners notified respondent of the damages suffered by them, and demanded reimbursement pursuant to the terms of the uninsured motorist provision of the liability insurance policy issued to petitioners by respondent and which was then in force and effect. When respondent refused to recognize its liability, arbitration under the terms of the policy was demanded and agreed upon to be conducted in accordance with Chapter 57, F.S., now Chapter 682, F.S. The provision of the insurance policy relative to aribitration provides that in the event of arbitration, each party shall select an arbitrator, and the two so named shall select a third arbitrator; the three arbitrators so selected shall hear and determine the questions in dispute, and the decision in writing of any two arbitrators shall be binding upon the parties. It is further provided that each party shall pay his or its chosen arbitrator, and shall bear equally the expense of the third arbitrator and all other expenses of the arbitration.

At the conclusion of their deliberations, following hearing and the taking of evidence, the arbitrators filed their report finding in favor of petitioners and assessing their damages in the sum of $2500.00. The matter of costs, expenses of arbitration, and fees of the arbitrators was not discussed during the hearing, nor was any provision therefor made in the written award filed by the arbitrators. Copies of the award were served on counsel for each of the parties.

Upon receipt of a copy of the award, petitioners' counsel wrote a letter to respondent's attorney itemizing the costs necessarily *804 incurred by them in connection with the arbitration proceedings in the total amount of $253.50. The arbitrators informally agreed to accept as their fee for services the sum of $200.00 each. Respondent thereupon paid to petitioners the sum of $2500.00 awarded them by the arbitrators, together with the sum of $253.50 for the costs incurred and claimed by them. Respondent also paid the fee of the arbitrator selected by it and one-half of the fee due the neutral arbitrator who had been selected to serve by the arbitrators appointed by the parties. Respondent refused, however, to pay the entire fee due the neutral arbitrator, and refused to pay any part of the fee due to the arbitrator appointed by petitioners. Petitioners' attorney wrote a letter to respondent's attorney, sending copies to all three arbitrators, requesting that the arbitration award be amended by taxing the costs claimed by them in the sum of $253.50 together with the full amount of the arbitrators' fees in the sum of $600.00 against respondent. Respondent's counsel replied to this letter, sending copies to the arbitrators, objecting to any amendment being made to the award previously filed by the arbitrators, and taking the position that the total amount of the arbitrators' fees should not be taxed against it. Without holding a formal hearing, or giving notice to either of the parties, two of the three members of the arbitration board rendered a supplemental order in accordance with petitioners' application, taxing the costs and the total amount of all arbitrators' fees against respondent.

Although respondent's counsel orally informed petitioners' attorney that respondent refused to pay the arbitrators' fees as taxed against it by the amended arbitration award, respondent took no further action to contest, appeal, or otherwise seek administrative or judicial review of the portion of the award to which it objected.

The arbitration statute provides that on application of either party to an arbitration, the arbitrators may modify or correct the award upon certain specified grounds provided written notice of such application is given to the opposite party within twenty days after delivery of the award to the applicant.[1] It is our view that respondent's objection to the award taxing against it the total amount of arbitrators' fees falls properly within the grounds authorizing a change or modification of the arbitrators' award pursuant to the above-mentioned section of the statute. The record reveals, however, that respondent made no application within the twenty days permitted by the statute to secure such a change or modification of the award.

The statute further provides that either party to the arbitration may apply to a court of competent jurisdiction for the modification or correction of an arbitration award upon certain specified grounds, provided such application is made within ninety days after delivery of a copy of the award to the applicant.[2] We conclude that respondent's objection to the portion of the award here in question comes within the scope of the grounds authorizing the modification or correction of an award by the court. The record reveals that no such application was made to any court by respondent within ninety days after delivery of a copy of the award to it.

After more than ninety days had expired from the rendition of the arbitrators' order modifying the original award and taxing costs and fees against respondent, petitioners instituted this action in the Small Claims Court of Columbia County. By their complaint petitioners sought judgment against respondent in the amount of $300.00, such sum representing the portions of the arbitrators' fees taxed against respondent which it had theretofore refused to pay. Respondent filed an answer in which it defended on the ground that the arbitration provision of the insurance policy *805 issued by it to petitioners provides that each party shall pay the fee of the arbitrator appointed by him or it, and one-half of the fee of the neutral arbitrator selected by them to serve in the proceeding. Respondent alleged that the division of liability for payment of the arbitrators' fees between the parties as provided by the terms of the insurance policy is binding upon the board of arbitrators under the provision of the statute relating to fees and expenses of arbitration, and that the arbitrators were without jurisdiction or authority to tax the total amount of arbitrators' fees against it. The statute on which respondent relied in support of its defense in the Small Claims Court is as follows:

"Unless otherwise provided in the agreement or provision for arbitration, the arbitrators' and umpire's expenses and fees, together with other expenses, not including counsel fees, incurred in the conduct of the arbitration, shall be paid as provided in the award."[3]

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Bluebook (online)
224 So. 2d 802, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carter-v-state-farm-mutual-automobile-ins-co-fladistctapp-1969.