Michigan Mut. Liability Co. v. Graham
| Decision Date | 17 January 1973 |
| Docket Number | Docket No. 13262,No. 3,3 |
| Parties | MICHIGAN MUTUAL LIABILITY COMPANY, a Michigan corporation, Plaintiff-Appellant, v. Lewis J. GRAHAM et al., Defendants-Appellees |
| Court | Court of Appeal of Michigan — District of US |
William E. Jungerheld, Davidson, Chaklos, Jungerheld & Hoffmann, Saginaw, for plaintiff-appellant.
Cicinelli, Mossner, Majoros, Harrigan & Alexander, Saginaw (for Grahams).
Joseph G. DeFrancesco, Saginaw (Arbitrator), for defendants-appellees.
Before BRONSON, P.J., and R. B. BURNS and DANHOF, JJ.
The plaintiff brought this action seeking to stay an arbitration proceeding under GCR 1963, 769.2. The trial court denied relief and ordered the parties to proceed to arbitration. We affirm.
The plaintiff issued a policy of insurance to Lewis J. Graham which covered 3 automobiles. The policy contained an uninsured motorist clause which provided coverage in the amount of $10,000. Defendant David Graham was injured by an uninsured-motorist and made a claim against the company. The policy contained an arbitration clause which reads:
'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 automobile because of bodily injury to the insured, or do not agree as to the amount of payment which may be owing under this Part, 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 in accordance with the rules of the American Arbitration Association.'
Defendant David Graham demanded arbitration and in an amended demand requested compensation in the amount of $30,000 on the theory that he was entitled to $10,000 for each insured car. This question was argued before the arbitrator and both sides submitted briefs. After the case was submitted to the arbitrator and 11 days before a decision of the arbitrator was due, the plaintiff commenced this action.
Piecemeal litigation is to be frowned on. In Maryland Casualty Co. v. McGee, 32 Mich.App. 539, 546, 189 N.W.2d 44, 48 (1971), this Court said:
'We think an interpretation of an arbitration agreement which would have the effect of chopping up a dispute between an insured and his insurer and requiring separate determinations of each portion thereof in different forums militates against the very benefits sought by arbitration and which benefits tend to make arbitration a reasonable remedy under the insurance code.'
The agreement to arbitrate found in this contract is an agreement to arbitrate all controversies arising under the contract that are not expressly exempt. M.C.L.A. 600.5001(2); M.S.A. 27A.5001(2); Maryland Casualty Co. v. McGee, Supra. The controversy between the parties is not expressly exempted by the contract.
Arbitration may be stayed only on a finding that there was no agreement to arbitrate. GCR 1963, 769.2(2). GCR 1963, 769.2(4) provides:
'An order for arbitration shall not be refused on the ground that the claim in issue lacks merit or bona fides or because any fault or grounds for the claim sought to be arbitrated have not been shown.'
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