Detroit Auto. Inter-Ins. Exchange v. Spafford

• Decision Date: 24 June 1975
• Docket Number: Docket No. 19666,INTER-INSURANCE,No. 3,3
• Citation: 62 Mich.App. 365,233 N.W.2d 283
• Parties: DETROIT AUTOMOBILEEXCHANGE, Plaintiff-Appellant, v. Joan SPAFFORD and American Arbitration Association, Defendants-Appellees
• Court: Court of Appeal of Michigan — District of US

Page 283

233 N.W.2d 283

62 Mich.App. 365

DETROIT AUTOMOBILE INTER-INSURANCE EXCHANGE, Plaintiff-Appellant, v. Joan SPAFFORD and American Arbitration Association,

Defendants-Appellees.

Docket No. 19666.

Court of Appeals of Michigan, Division No. 3.

June 24, 1975.

Leave to Appeal Denied Oct. 1, 1975.

Released for Publication Oct. 7, 1975.

Heilman, Purcell, Tunison & Cline by Donald E. Cline, Saginaw, for plaintiff-appellant.

Duane S. vanBenschoten, Saginaw, for Spafford.

American Arbitration Ass'n, pro se.

Before ALLEN, P.J., and T. M. BURNS and MAHER, JJ.

PER CURIAM.

Plaintiff, Detroit Automobile Inter-Insurance Exchange, appeals from an order of summary judgment dismissing its complaint seeking declaratory judgment and to enjoin arbitration before defendant, American Arbitration Association.

On March 18, 1972, defendant, Joan Spafford, was injured in a collision between two snowmobiles. The accident occurred at night on the frozen surface of Bass Lake in Clare County, Michigan. Mrs. Spafford was a passenger on the snowmobile owned and operated by her husband, H. C. Spafford, Jr. The Spafford's were experiencing marital difficulties at the time and a divorce, then pending, became final in May of 1972.

H. C. Spafford, Jr. was the named insured on the policy in question and on July 17, 1973, Joan Spafford filed a demand for arbitration in accordance with the policy provisions. Plaintiff objected to the matter being submitted to arbitration and thereafter filed its complaint for declaratory judgment and injunctive relief. Plaintiff asserted that arbitration should be enjoined because: (1) Mrs. Spafford was not 'an insured' under the policy in question; (2) the uninsured motorist coverage was not applicable to crawler-tread vehicles; (3) the accident did not occur on a public highway; (4) Mrs. Spafford failed to give timely notice as required by the policy.

Defendant Spafford moved for summary judgment. In granting defendant's motion, the trial court held that the parties must first proceed to arbitration before the court could intervene. ¹ We agree.

'Arbitration may be stayed only on a finding that there was no agreement to arbitrate.' Michigan Mutual Liability Co v. Graham, 44 Mich.App. 406, 408, 205 N.W.2d 289, 291 (1973). The policy in this case provides uninsured motorist coverage to the named insured 'and, while residents of the same household of such individual, the spouse and relatives of either'. With respect to arbitration of claims under the uninsured motorists provision of the policy, the following language appears:

'The determination as to whether the insured shall be legally entitled to recover damages and if so entitled the amount thereof, shall be made by agreement between the insured and the Exchange.

'In the event of disagreement and upon the written demand of either, the matter or matters upon which the insured and the Exchange do not agree shall be settled by arbitration is accordance with the rules of the American Arbitration Association and judgment upon the award rendered by the arbitrators may be entered in any court having jurisdiction thereof. The insured and the Exchange each agrees to consider itself bound and to be bound by any award made by the arbitrators pursuant to this coverage. Such an award shall be a condition precedent to any action against the Exchange by reason of the insurance afforded by this coverage.'

In Maryland Casualty Co. v. McGee, 32 Mich.App. 539, 189 N.W.2d 44 (1971), the policy provisions were substantially the same as in the instant case. There plaintiff denied contact between the alleged hit-and-run vehicle and defendant's auto and thus brought an action seeking a declaratory judgment as to whether its insured had been in an accident with an uninsured motorist as defined in the contract of insurance. Plaintiff claimed that until such a court determination was made,...