Dairyland Insurance v. Rose

591 P.2d 281, 92 N.M. 527
CourtNew Mexico Supreme Court
DecidedFebruary 28, 1979
Docket12152
StatusPublished
Cited by29 cases

This text of 591 P.2d 281 (Dairyland Insurance v. Rose) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dairyland Insurance v. Rose, 591 P.2d 281, 92 N.M. 527 (N.M. 1979).

Opinion

OPINION

FEDERICI, Justice.

On November 19, 1975, Thomas Kimbriel was involved in an automobile accident resulting in his death. At the time of the accident Kimbriel was covered by an insurance contract with Dairyland Insurance Company (appellant) providing for uninsured motorist protection.

Following Kimbriel’s death, Stewart Rose (appellee), administrator and personal representative of the estate of Thomas Kimbriel, made written demand for arbitration pursuant to the Dairyland policy. Appellant filed a reply to the demand for arbitration. A hearing was held before the appointed arbitrator and a decision was entered awarding damages to appellee.

Appellant filed a complaint in district court pursuant to § 66-5-303, N.M.S.A.1978 (formerly § 64-24-107, N.M.S.A.1953), for an appeal de novo from the arbitration award. Appellee’s motion to dismiss the appeal was granted and this appeal followed.

The trial court held that (1) a provision in the insurance policy reflected an intention by the parties that arbitration be binding, and (2) that § 66-5-303, allowing an appeal de novo from an arbitration award, was superseded or repealed by implication by the enactment of the New Mexico Uniform Arbitration Act, § 44-7-1, et seq., N.M.S.A. 1978 (formerly § 22-3-9, et seq., N.M.S.A. 1953 (Supp.1975)).

As to the trial court’s conclusion that the policy reflected an intention by the parties that arbitration be binding, appellant argues that when a policy provision is in conflict with the law, the policy provision must fall.

The policy of insurance contains the following provision:

G. Arbitration
If any person making claim hereunder and the company do not agree that such person is legally entitled to recover damages from the owner or operator of an uninsured highway vehicle because of bodily injury or property damage to the insured, or do not agree as to the amount of payment which may be owing under this insurance, then, upon written demand of either, the matter or matters upon which such person and the company do not agree shall be settled by arbitration, which shall be conducted in accordance with the rules of the American Arbitration Association unless other means of conducting the arbitration are agreed to between the insured and the company, and judgment upon the award rendered by the arbitrators may be entered in any court having jurisdiction thereof. Such person and the company each agree to consider itself bound and to be bound by any award made by the arbitrators pursuant to this insurance.

We are aware of the case law in New Mexico which holds that where the provisions of a policy of insurance conflict with, or do not contain, the statutory requirement, the statute controls. Chavez v. State Farm Mutual Automobile Ins. Co., 87 N.M. 327, 533 P.2d 100 (1975); Willey v. Farmers Insurance Group, 86 N.M. 325, 523 P.2d 1351 (1974); Sloan v. Dairyland Insurance Company, 86 N.M. 65, 519 P.2d 301 (1974). However, these cases do not control the result we reach here. Even if we were to apply the rules announced, we still must determine whether the uninsured motorist insurance law, § 66-5-303, or the New Mexico Uniform Arbitration Act, applies in this case.

Appellant asserts that § 66-5-303 was not superseded or repealed by implication by the enactment of the New Mexico Uniform Arbitration Act as the trial court concluded. We disagree.

Section 66-5-303 reads:

Uninsured motorist — judicial review of arbitration award.
—Any party aggrieved by an arbitration award entered in any controversy arising under an insured motorist provision of a motor vehicle or automobile liability insurance policy may, within thirty days [30] after entry of the arbitration award, appeal to any district court having venue of the action. The appeal shall be “de novo.” (Emphasis added.)

We note that the above statute refers to “an insured motorist provision”. In whatever context the term “insured” is taken, there is little doubt that the intent of the Legislature in enacting this section was to refer to “an uninsured motorist provision”. We reach this conclusion in view of the inclusion of the term “uninsured motorist” in the title of the Act and the paragraph heading of § 66-5-303, quoted above. In any event, if the Legislature intended to refer to an “insured motorist provision”, § 66-5-303 would not be applicable to this case and the issue of repeal by implication would be rendered moot.

Section 44-7-12 of the Uniform Arbitration Act provides:

Vacating an award.—
A. Upon application of a party, the court shall vacate an award where:
(1) the award was procured by corruption, fraud or other undue means;
(2) there was evident partiality by an arbitrator appointed as a neutral or corruption in any of the arbitrators or misconduct prejudicing the rights of any party;
(3) the arbitrators exceeded their powers;
(4) the arbitrators refused to postpone the hearing upon sufficient cause being shown therefor or refused to hear evidence material to the controversy or otherwise so conducted the hearing, contrary to the provisions of section 5 [44-7-5 NMSA 1978], as to prejudice substantially the rights of a party; or
(5) there was no arbitration agreement and the issue was not adversely determined in proceedings under section 2 [44-7-2 NMSA 1978] and the party did not participate in the arbitration hearing without raising the objection. The fact that the relief was such that it could not or would not be granted by a court of law or equity is not ground for vacating or refusing to confirm the award.
B. An application under this section shall be made within ninety [90] days after delivery of a copy of the award to the applicant except that, if predicated upon corruption, fraud or other undue means, it shall be made within ninety [90] days after such grounds are known or should have been known.
C. In vacating the award on grounds other than stated in paragraph (5) of subsection A the court may order a rehearing before new arbitrators chosen as provided in the agreement, or in the absence thereof, by the court in accordance with section 3 [44-7-3 NMSA 1978], or if the award is vacated on grounds set forth in paragraphs (3) and (4) of subsection A the court may order a rehearing before the arbitrators who made the award or their successors appointed in accordance with section 3 [44-7-3 NMSA 1978]. The time within which the agreement requires the award to be made is applicable to the rehearing and commences from the date of the order.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

World Fuel Services v. Nambe Pueblo Development
362 F. Supp. 3d 1021 (D. New Mexico, 2019)
Patterson v. Nine Energy Serv., LLC
355 F. Supp. 3d 1065 (D. New Mexico, 2018)
Jerry Erwin Assocs., Inc. v. Estate of Asher
290 F. Supp. 3d 1213 (D. New Mexico, 2017)
Laurich v. Red Lobster Rests., LLC
295 F. Supp. 3d 1186 (D. New Mexico, 2017)
Evangelical Lutheran Good Samaritan Society v. Moreno
277 F. Supp. 3d 1191 (D. New Mexico, 2017)
La Frontera Center, Inc. v. United Behavioral Health, Inc.
268 F. Supp. 3d 1167 (D. New Mexico, 2017)
Krahmer v. Laurel Healthcare Providers, L.L.C.
New Mexico Court of Appeals, 2013
Peck v. Laurel Healthcare Providers, LLC
2014 NMCA 1 (New Mexico Court of Appeals, 2013)
Barron v. Evangelical Lutheran Good Samaritan Society
2011 NMCA 94 (New Mexico Court of Appeals, 2011)
THI OF NEW MEXICO AT LAS CRUCES, LLC v. Fox
727 F. Supp. 2d 1195 (D. New Mexico, 2010)
Silver v. Brown
678 F. Supp. 2d 1187 (D. New Mexico, 2009)
McMillan v. Allstate Indemnity Co.
2004 NMSC 002 (New Mexico Supreme Court, 2003)
Padilla v. State Farm Mutual Automobile Insurance
2003 NMSC 011 (New Mexico Supreme Court, 2003)
Lisanti v. Alamo Title Ins. of Texas
2002 NMSC 032 (New Mexico Supreme Court, 2002)
Padilla v. State Farm Mutual Automobile Insurance
2002 NMCA 001 (New Mexico Court of Appeals, 2001)
Allstate Insurance v. Perea
8 P.3d 166 (New Mexico Court of Appeals, 2000)
Medina v. Foundation Reserve Insurance
1997 NMSC 027 (New Mexico Supreme Court, 1997)
Robinson v. First Wyoming Bank, NA
909 P.2d 689 (Montana Supreme Court, 1995)
Bruch v. CNA Insurance
870 P.2d 749 (New Mexico Supreme Court, 1994)

Cite This Page — Counsel Stack

Bluebook (online)
591 P.2d 281, 92 N.M. 527, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dairyland-insurance-v-rose-nm-1979.