Wichman v. Farmers Ins. Exchange, 93-0524

• Decision Date: 05 October 1993
• Docket Number: No. 93-0524,93-0524
• Citation: 514 N.W.2d 724,179 Wis.2d 851
• Parties: NOTICE: UNPUBLISHED OPINION. RULE 809.23(3), RULES OF CIVIL PROCEDURE, PROVIDE THAT UNPUBLISHED OPINIONS ARE OF NO PRECEDENTIAL VALUE AND MAY NOT BE CITED EXCEPT IN LIMITED INSTANCES. Rand WICHMAN, Plaintiff-Respondent, v. FARMERS INSURANCE EXCHANGE, Defendant-Appellant.
• Court: Wisconsin Court of Appeals

Page 724

514 N.W.2d 724

179 Wis.2d 851

NOTICE: UNPUBLISHED OPINION. RULE 809.23(3), RULES OF CIVIL PROCEDURE, PROVIDE THAT UNPUBLISHED OPINIONS ARE OF NO PRECEDENTIAL VALUE AND MAY NOT BE CITED EXCEPT IN LIMITED INSTANCES.

Rand WICHMAN, Plaintiff-Respondent, v. FARMERS INSURANCE EXCHANGE, Defendant-Appellant.

No. 93-0524.

Court of Appeals of Wisconsin.

Oct. 5, 1993.

Before CANE, P.J., LaROCQUE and MYSE, JJ.

PER CURIAM.

Farmers Insurance Exchange appeals a trial court order that modified an arbitration award. The arbitration panel had interpreted a provision of Rand Wichman's underinsured motorist policy with Farmers as a "reducing clause," lowering coverage for amounts Wichman received in worker's compensation benefits: "This coverage shall not apply to the benefit of any insurer or self-insurer under any worker's or workmen's compensation or disability benefits law or any similar law." The trial court concluded that the arbitration panel had misinterpreted this provision and ordered Wichman to receive unreduced underinsurance motorist benefits. On appeal, Farmers argues that the trial court should not have interfered with the arbitrators' analysis of the insurance policy. In response, Wichman argues the trial court corrected the error of the arbitrators' analysis and properly modified their decision. Because the trial court should not have set aside the arbitrators' decision, we reverse the trial court order and remand the matter with directions to confirm the arbitrators' award.

Trial and appellate courts conduct only limited review of arbitrators' awards. Fillnow v. Madison, 148 Wis.2d 414, 416, 435 N.W.2d 296, 297 (Ct.App.1988). Such awards are presumed valid and will be overturned only on a showing of clear and convincing evidence. Kemp v. Fisher, 89 Wis.2d 94, 100, 277 N.W.2d 859, 862 (1979). Mere errors of judgment are not enough to upset an award, whether upon issues of fact or law. Reith v. Wynhoff, 28 Wis.2d 336, 343, 137 N.W.2d 33, 37 (1965). Arbitrators are inherently the judges of both the facts and the law. Layton School of Art & Design v. WERC, 82 Wis.2d 324, 343 n.18, 262 N.W.2d 218, 227 n.18 (1978). Courts will overturn an award only if the arbitrators exceeded their authority, dispensed their own brand of justice, issued a perverse misconstruction of the contract, committed positive misconduct, demonstrated a manifest disregard for the law or acted illegally or in violation of public policy. Nicolet HS Dist. v. Nicolet Ed. Asso., 118 Wis.2d 707, 713 & n.3, 348 N.W.2d 175, 178 & n.3 (1984).

Here, the trial court overstepped its limited power of review. The arbitrators possess...