ISOFEA v. FARMERS INSURANCE EXCHANGE COMPANY Part I
ISOFEA v. FARMERS INSURANCE EXCHANGE COMPANY Part I
ISOFEA v. FARMERS INSURANCE EXCHANGE COMPANY Part I 07:17:2006
ISOFEA v. FARMERS INSURANCE EXCHANGE COMPANY
Filed 7/13/06
IN THE SUPREME COURT OF CALIFORNIA
ISOFEA PILIMAI, )
)
Plaintiff and Appellant, )
) S133850
v. )
) Ct.App. 3 C047483
FARMERS INSURANCE EXCHANGE )
COMPANY, )
) Sacramento County
Defendant and Respondent. ) Super. Ct. No. 03CS00611
__________________________________ )
This case presents several questions regarding whether a party to an uninsured motorist arbitration pursuant to Insurance Code section 11580.2 is eligible to recover costs and prejudgment interest. Specifically, we are asked to decide (1) whether the cost-shifting provisions of Code of Civil Procedure section 998 apply to such arbitrations; (2) whether the award of such costs, together with the arbitration award, can exceed an insurer's â€
Description
Arbitration conducted pursuant to Insurance Code Sec. 11580.2 to determine coverage for damages caused by uninsured motorist is an arbitration within meaning of and subject to Code of Civil Procedure Sec. 998, which provides that party who rejected a settlement offer that is later exceeded by ultimate judgment must bear costs other party incurred in making offer. Insurance Code Sec. 11580.2(p)(4), which states insurer's maximum liability to insured "shall not exceed the insured's underinsured motorist coverage limits...," does not preclude insured from recovering costs under Code of Civil Procedure Sec. 998 where costs, when added to arbitration award, would exceed policy's coverage limits. Under Civil Code Sec. 3291, which allows plaintiff in personal injury action to recover prejudgment interest where amount of ultimate judgment is less than plaintiff's rejected settlement offer, prejudgment interest is not available to an insured who sues insurance company to recover policy benefits even if purpose of recovery is to compensate for personal injury incurred in accident. Where ultimate judgment arising from uninsured motorist arbitration exceeds amount of plaintiff's rejected settlement offer, award of costs to plaintiff pursuant to Code of Civil Procedure Sec. 998 may include deposition and exhibit preparation expenses in addition to expert witness fees.
