Gordon v. G.R.O.U.P., Inc.

49 Cal. App. 4th 998, 56 Cal. Rptr. 2d 914, 96 Cal. Daily Op. Serv. 7294, 96 Daily Journal DAR 11916, 1996 Cal. App. LEXIS 919
CourtCalifornia Court of Appeal
DecidedSeptember 27, 1996
DocketA069452
StatusPublished
Cited by13 cases

This text of 49 Cal. App. 4th 998 (Gordon v. G.R.O.U.P., Inc.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gordon v. G.R.O.U.P., Inc., 49 Cal. App. 4th 998, 56 Cal. Rptr. 2d 914, 96 Cal. Daily Op. Serv. 7294, 96 Daily Journal DAR 11916, 1996 Cal. App. LEXIS 919 (Cal. Ct. App. 1996).

Opinion

Opinion

PHELAN, J. *

Respondents Anthony Gordon, Dan Jackson, George King, James Rudisill, Lonnie Williams, and Taruk Ben-Ali (respondents), filed suit against Melvin Johnson (Johnson), G.R.O.U.P., Inc. (GROUP), and Herman Sally, Jr. (Sally), for personal injuries sustained in a motor vehicle accident. In this appeal, GROUP and its uninsured motorist carrier, Paratransit Insurance Corporation (hereinafter, collectively, appellants), seek review of an order and judgment confirming an arbitrator’s award of damages, plus statutory and arbitration costs, in favor of respondents. GROUP and Paratransit contend that the trial court erred by denying GROUP’S request for a trial de novo after a “combined” arbitration of respondents’ claims pursuant to statutes which require, respectively, judicial arbitration for claims under $50,000 (Code Civ. Proc., § 1141.10 et seq.), 1 and contractual arbitration for claims under the uninsured motorist provisions of GROUP’S insurance policy (Ins. Code, § 11580.2).

We conclude that the trial court acted within its authority and discretion when it ordered the parties to proceed simultaneously with the judicial arbitration and the uninsured motorist arbitration before a court-appointed arbitrator, and correctly concluded that the arbitrator’s award under GROUP’S uninsured motorist coverage is binding on appellants. Accordingly, we affirm.

I. Factual and Procedural Background

The underlying facts of this case are very simple, and essentially undisputed. On December 24, 1991, respondents were passengers in a van driven by Sally and owned by GROUP. As Sally backed the van into the street, it was hit by a Chevrolet Camaro, which was owned by Johnson. Johnson was not insured and the driver of Johnson’s car, who had allegedly stolen the vehicle, was never identified after fleeing the scene of the accident. Respondents incurred medical expenses ranging from $1,255 to $3,500, and claimed wage loss as a result of the incident. GROUP was either self-insured or insured by Paratransit. Sally was insured through GROUP, and ultimately recovered benefits pursuant to GROUP’S uninsured motorist coverage.

*1002 The procedural history of the case is far more complicated. Respondents’ first amended complaint was filed on December 22, 1992, against GROUP (for negligently training or supervising Sally as a driver), Sally (for negligent operation of the van), Johnson (for negligent operation or entrustment of the Camaro), and the Camaro driver (as a Doe defendant). GROUP and Sally filed a joint answer to the main complaint denying liability, and a cross-complaint against Johnson and the Camaro driver for indemnity and property damage. Sally also retained separate counsel, John McDougall, to proceed on a cross-complaint against GROUP, Johnson and the Camaro driver for personal injuries, indemnity, and property damage. Because of the conflict between GROUP and Sally, GROUP initially had two sets of attorneys in the proceedings below, as follows: Walter K. Dods, to defend GROUP and Sally on the main complaint and to prosecute the cross-complaint against Johnson and the Camaro driver; and Patricia M. Fama, of St. Clair, McFetridge & Griffin (the St. Clair law firm), to defend GROUP against the uninsured motorist claims alleged in Sally’s cross-complaint. 2 The St. Clair law firm represents appellants GROUP and Paratransit in this appeal. 3

On May 21, 1993, 4 the trial court issued an order to show cause for failure to follow the local rules. 5 In response to the order to show cause, GROUP (through Ms. Fama) argued that Sally was making an uninsured motorist claim, and should do so only in a “binding arbitration between [GROUP] and Sally under the provisions of the Insurance Code.” “In order to invoke the provisions of Insurance Code Section 11580.2,” Ms. Fama continued, “Sally need only demand arbitration.” However, Ms. Fama objected to a “combined” arbitration of respondents’ complaint and Sally’s cross-complaint.

On June 14, the court notified the parties that the case had been assigned to judicial arbitration, and sent a list of proposed arbitrators. The hearing in the judicial arbitration was set for August 12.

On July 23, GROUP (through Ms. Fama) moved for judgment on the cross-complaint or, in the alternative, to sever Sally’s cross-complaint and *1003 compel arbitration of the cross-action under Insurance Code section 11580.2. In this latter regard, Ms. Fama asserted that GROUP is “self-insured.” Respondents opposed GROUP’S motion, suggesting that the court instead hold a case management conference or order the following: “[A] single arbitration [to] be held to determine all issues, including settling and awarding recovery (if any is found supported) under either theory, i.e., whether this is an uninsured-motorist claim against [GROUP,] or whether it is an action against [GROUP] and its driver, [Sally]. The matter, if found to be properly an uninsured-motorist claim, will produce a binding result, otherwise not.” On August 5, GROUP (through James P. Molinelli of the St. Clair law firm) objected to respondents’ suggestion, arguing that the combined arbitration of uninsured motorist and third party liability issues would be a “procedural oddity,” but that GROUP’S motion for severance and to compel arbitration of Sally’s cross-complaint had “absolutely no effect” on the main action. On August 6, before the court could rule on GROUP’S motion, Sally voluntarily dismissed his cross-complaint against GROUP.

The parties thereafter stipulated to remove the case from the arbitration calendar and requested a case management conference, which was scheduled for October 1. In their case management conference statement, respondents requested a combined arbitration of their uninsured motorist claims and their claims of third party (Sally’s) negligence. 6 In a joint response, GROUP and Sally said they had no objection to an uninsured motorist arbitration, but argued through Mr. Dods that respondents should choose whether to litigate their claims under either an uninsured motorist theory or a third party liability theory. Ms. Fama did not respond to the respondents’ request and, instead, asked to be removed from the court’s service list on the theory that GROUP was no longer a cross-defendant because of the dismissal of Sally’s uninsured motorist claim. At the case management conference, which was held on October 15, the court granted Ms. Fama’s request to be relieved of further appearances in this action.

On November 4, respondents petitioned the court to order a combined arbitration of their claims pursuant to section 1141.10 et seq., and California Rules of Court, rule 1600 (judicial arbitration), and Insurance Code section 11580.2 (binding uninsured motorist arbitration). Mr.

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49 Cal. App. 4th 998, 56 Cal. Rptr. 2d 914, 96 Cal. Daily Op. Serv. 7294, 96 Daily Journal DAR 11916, 1996 Cal. App. LEXIS 919, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gordon-v-group-inc-calctapp-1996.