Romano v. Allstate Insurance Co.

458 A.2d 339, 1983 R.I. LEXIS 849
CourtSupreme Court of Rhode Island
DecidedApril 14, 1983
Docket80-268-Appeal
StatusPublished
Cited by22 cases

This text of 458 A.2d 339 (Romano v. Allstate Insurance Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Romano v. Allstate Insurance Co., 458 A.2d 339, 1983 R.I. LEXIS 849 (R.I. 1983).

Opinion

OPINION

BEVILACQUA, Chief Justice.

This is an appeal from a Superior Court judgment vacating an arbitration award on the grounds that the arbitrator imperfectly executed his powers so that a final and definite award was not made.

The plaintiff motorist, Florence Romano, was injured in a rear-end collision with an uninsured driver. As a result of her injuries, she made a claim against defendant, Allstate Insurance Company (Allstate), pursuant to the uninsured-motorist provision of her insurance policy. When the parties could not agree on a settlement, plaintiff *340 requested arbitration as provided by the terms of her policy. 1

At the outset of the arbitration hearing, Allstate conceded to liability and the lack of insurance on the part of the other party involved in the collision. Thus, the sole issue before the arbitrator was the amount of damages for personal injury.

The pertinent facts are as follows. The plaintiff was the only witness at the hearing. She testified that as a result of the collision, she sustained injuries to her neck, left arm and shoulder, and lower back. Three days after the collision, she saw her family physician for treatment of stiffness and discomfort. At various times she was treated by an orthopedic surgeon, and a neurosurgeon. She also saw an ear, nose and throat specialist for treatment of a hearing problem which possibly developed as a result of the accident. In addition, a physician from the Department of Employment Security as well as a physician on behalf of Allstate examined her.

The plaintiff further testified that her lower back and ear problems were corrected but that she continued to experience pain and stiffness in her neck and left shoulder. X-rays showed a narrowing of an interver-tebral space in her neck with associated degeneration. According to Allstate’s physician, this condition may have been present before the collision. All of the physicians, however, agreed that her pain and discomfort were causally related to the accident. Her family physician and the DES physician diagnosed her as suffering from cervical strain. Treatment consisted of medication, heat, traction, and a collar. Total medical expenditures for office visits and prescriptions were $1,545.21.

During the six months following the collision, plaintiff continued to work as a waitress against the orders of her family physician. She testified that her work aggravated her condition and was at least partially responsible for the number of visits to her family doctor. She explained that she was determined to work the pain off. Furthermore, her husband was disabled and she was the sole wage earner in the family.

Eventually, plaintiff did take time off from work in the months of January through April 1978 and February through July 1979. She spent approximately five weeks during each of these periods in Florida vacationing with her husband. She did not apply for temporary disability benefits when she was out of work in 1978, but she did receive benefits in 1979. In May 1979, the DES physician examined her and found her to be temporarily totally disabled.

The plaintiff testified that her employer’s threats to replace her motivated her return to work in July 1979. She further stated that since her return, she has worked fewer hours and earned less money than prior to the accident. As a result of her time out from work in 1978 and 1979, plaintiff alleged an estimated $4,648 in lost earnings.

At the close of the hearing, the arbitrator issued an award of $1,500. Dissatisfied with this result, plaintiff filed a petition in Superior Court to have the arbitrator’s award of damages vacated on the grounds that it was so grossly inadequate as to indicate prejudice and an imperfect execution of the powers of the arbitrator. The trial justice granted her petition to vacate, finding the award to be so grossly inadequate as to indicate an obvious imperfect execution of the arbitrator’s powers. The defendant appeals.

*341 The sole issue before this court is whether the trial justice erred in vacating the arbitrator’s award solely on the basis that it was grossly inadequate.

The defendant claims that an arbitration award cannot be vacated unless there is a clear showing of one of the statutory grounds stated in G.L.1956 (1969 Reenactment) § 10-3-12 or that it was completely irrational. Thus, so long as there is a reasonable basis for the award, it must be upheld even though a reviewing court could have decided differently.

The defendant further contends that the trial justice erred in exercising a de novo review of the evidence. The defendant argues that the trial justice evaluated the evidence, made findings of credibility, ascribed weight to certain evidence, and thereby improperly exercised his independent judgment regarding the amount of compensation due to plaintiff.

The plaintiff, in turn, argues that the award did not respond to the uncontradict-ed evidence presented as it was insufficient to cover her out-of-pocket expenses for medical bills and prescriptions, and her loss of earnings. Furthermore, it apparently made no allowance for her pain and suffering.

The judiciary acknowledges that its role in the arbitration process is extremely limited. Coventry Teachers’ Alliance v. Coventry School Committee, R.I., 417 A.2d 886, 888 (1980). This court emphasized the autonomy of arbitration procedures when it stated that where the parties to a collective-bargaining agreement submit their contract to a binding arbitration, such decisions are, except for a few very limited situations, unreviewable by the courts. 2 Belanger v. Matteson, 115 R.I. 332, 345, 346 A.2d 124, 133 (1975) (citing United Steelworkers of America v. American Mfg. Co., 363 U.S. 564, 80 S.Ct. 1343, 4 L.Ed.2d 1403 (1960); United Steelworkers of America v. Warrior & Gulf Navigation Co., 363 U.S. 574, 80 S.Ct. 1347, 4 L.Ed.2d 1409 (1960); United Steelworkers of America v. Enterprise Wheel & Car Corp., 363 U.S. 593, 80 S.Ct. 1358, 4 L.Ed.2d 1424 (I960)).

Four specific situations warranting judicial review are enunciated in G.L.1956 (1969 Reenactment) § 10-3-12 as follows:

“(a) Where the award was procured by corruption, fraud, or undue means.
(b) Where there was evident partiality or corruption on the part of the arbitrators, or either of them.

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Bluebook (online)
458 A.2d 339, 1983 R.I. LEXIS 849, Counsel Stack Legal Research, https://law.counselstack.com/opinion/romano-v-allstate-insurance-co-ri-1983.