31A-22-321 - Use of arbitration in third party motor vehicle accident cases.
31A-22-321. Use of arbitration in third party motor vehicle accident cases.
(1) A person injured as a result of a motor vehicle accident may elect to submit all thirdparty bodily injury claims to arbitration by filing a notice of the submission of the claim tobinding arbitration in a district court if:
(a) the claimant or the claimant's representative has:
(i) previously and timely filed a complaint in a district court that includes a third partybodily injury claim; and
(ii) filed a notice to submit the claim to arbitration within 14 days after the complaint hasbeen answered; and
(b) the notice required under Subsection (1)(a)(ii) is filed while the action underSubsection (1)(a)(i) is still pending.
(2) (a) If a party submits a bodily injury claim to arbitration under Subsection (1), theparty submitting the claim or the party's representative is limited to an arbitration award that doesnot exceed $50,000 in addition to any available personal injury protection benefits and any claimfor property damage.
(b) A claim for reimbursement of personal injury protection benefits is to be resolvedbetween insurers as provided for in Subsection 31A-22-309(6)(a)(ii).
(c) A claim for property damage may not be made in an arbitration proceeding underSubsection (1) unless agreed upon by the parties in writing.
(d) A party who elects to proceed against a defendant under this section:
(i) waives the right to obtain a judgment against the personal assets of the defendant; and
(ii) is limited to recovery only against available limits of insurance coverage.
(e) (i) This section does not prevent a party from pursuing an underinsured motoristclaim as set out in Section 31A-22-305.3.
(ii) An underinsured motorist claim described in Subsection (2)(e)(i) is not limited to the$50,000 limit described in Subsection (2)(a).
(iii) There shall be no right of subrogation on the part of the underinsured motoristcarrier for a claim submitted to arbitration under this section.
(3) A claim for punitive damages may not be made in an arbitration proceeding underSubsection (1) or any subsequent proceeding, even if the claim is later resolved through a trial denovo under Subsection (11).
(4) (a) A person who has elected arbitration under this section may rescind the person'selection if the rescission is made within:
(i) 90 days after the election to arbitrate; and
(ii) no less than 30 days before any scheduled arbitration hearing.
(b) A person seeking to rescind an election to arbitrate under this Subsection (4) shall:
(i) file a notice of the rescission of the election to arbitrate with the district court in whichthe matter was filed; and
(ii) send copies of the notice of the rescission of the election to arbitrate to all counsel ofrecord to the action.
(c) All discovery completed in anticipation of the arbitration hearing shall be availablefor use by the parties as allowed by the Utah Rules of Civil Procedure and Utah Rules ofEvidence.
(d) A party who has elected to arbitrate under this section and then rescinded the electionto arbitrate under this Subsection (4) may not elect to arbitrate the claim under this section again.
(5) (a) Unless otherwise agreed to by the parties or by order of the court, an arbitrationprocess elected under this section is subject to Rule 26, Utah Rules of Civil Procedure.
(b) Unless otherwise agreed to by the parties or ordered by the court, discovery shall becompleted within 150 days after the date arbitration is elected under this section or the date theanswer is filed, whichever is longer.
(6) (a) Unless otherwise agreed to in writing by the parties, a claim that is submitted toarbitration under this section shall be resolved by a single arbitrator.
(b) Unless otherwise agreed to by the parties or ordered by the court, all parties shallagree on the single arbitrator selected under Subsection (6)(a) within 90 days of the answer of thedefendant.
(c) If the parties are unable to agree on a single arbitrator as required under Subsection(6)(b), the parties shall select a panel of three arbitrators.
(d) If the parties select a panel of three arbitrators under Subsection (6)(c):
(i) each side shall select one arbitrator; and
(ii) the arbitrators appointed under Subsection (6)(d)(i) shall select one additionalarbitrator to be included in the panel.
(7) Unless otherwise agreed to in writing:
(a) each party shall pay an equal share of the fees and costs of the arbitrator selectedunder Subsection (6)(a); and
(b) if an arbitration panel is selected under Subsection (6)(d):
(i) each party shall pay the fees and costs of the arbitrator selected by that party's side;and
(ii) each party shall pay an equal share of the fees and costs of the arbitrator selectedunder Subsection (6)(d)(ii).
(8) Except as otherwise provided in this section and unless otherwise agreed to in writingby the parties, an arbitration proceeding conducted under this section shall be governed by Title78B, Chapter 11, Utah Uniform Arbitration Act.
(9) (a) Subject to the provisions of this section, the Utah Rules of Civil Procedure andUtah Rules of Evidence apply to the arbitration proceeding.
(b) The Utah Rules of Civil Procedure and Utah Rules of Evidence shall be appliedliberally with the intent of concluding the claim in a timely and cost-efficient manner.
(c) Discovery shall be conducted in accordance with Rules 26 through 37 of the UtahRules of Civil Procedure and shall be subject to the jurisdiction of the district court in which thematter is filed.
(d) Dispositive motions shall be filed, heard, and decided by the district court prior to thearbitration proceeding in accordance with the court's scheduling order.
(10) A written decision by a single arbitrator or by a majority of the arbitration panelshall constitute a final decision.
(11) An arbitration award issued under this section shall be the final resolution of allbodily injury claims between the parties and may be reduced to judgment by the court uponmotion and notice unless:
(a) either party, within 20 days after service of the arbitration award:
(i) files a notice requesting a trial de novo in the district court; and
(ii) serves the nonmoving party with a copy of the notice requesting a trial de novo underSubsection (11)(a)(i); or
(b) the arbitration award has been satisfied.
(12) (a) Upon filing a notice requesting a trial de novo under Subsection (11):
(i) unless otherwise stipulated to by the parties or ordered by the court, an additional 90days shall be allowed for further discovery;
(ii) the additional discovery time under Subsection (12)(a)(i) shall run from the notice ofappeal; and
(iii) the claim shall proceed through litigation pursuant to the Utah Rules of CivilProcedure and Utah Rules of Evidence in the district court.
(b) In accordance with Rule 38, Utah Rules of Civil Procedure, either party may requesta jury trial with a request for trial de novo filed under Subsection (11)(a)(i).
(13) (a) If the plaintiff, as the moving party in a trial de novo requested under Subsection(11), does not obtain a verdict that is at least $5,000 and is at least 30% greater than thearbitration award, the plaintiff is responsible for all of the nonmoving party's costs.
(b) Except as provided in Subsection (13)(c), the costs under Subsection (13)(a) shallinclude:
(i) any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
(ii) the costs of expert witnesses and depositions.
(c) An award of costs under this Subsection (13) may not exceed $6,000.
(14) (a) If a defendant, as the moving party in a trial de novo requested under Subsection(11), does not obtain a verdict that is at least 30% less than the arbitration award, the defendant isresponsible for all of the nonmoving party's costs.
(b) Except as provided in Subsection (14)(c), the costs under Subsection (14)(a) shallinclude:
(i) any costs set forth in Rule 54(d), Utah Rules of Civil Procedure; and
(ii) the costs of expert witnesses and depositions.
(c) An award of costs under this Subsection (14) may not exceed $6,000.
(15) For purposes of determining whether a party's verdict is greater or less than thearbitration award under Subsections (13) and (14), a court may not consider any recovery or otherrelief granted on a claim for damages if the claim for damages:
(a) was not fully disclosed in writing prior to the arbitration proceeding; or
(b) was not disclosed in response to discovery contrary to the Utah Rules of CivilProcedure.
(16) If a district court determines, upon a motion of the nonmoving party, that themoving party's use of the trial de novo process was filed in bad faith as defined in Section78B-5-825, the district court may award reasonable attorney fees to the nonmoving party.
(17) Nothing in this section is intended to affect or prevent any first party claim fromlater being brought under any first party insurance policy under which the injured person is acovered person.
(18) (a) If a defendant requests a trial de novo under Subsection (11), in no event can thetotal verdict at trial exceed $15,000 above any available limits of insurance coverage and in noevent can the total verdict exceed $65,000.
(b) If a plaintiff requests a trial de novo under Subsection (11), the verdict at trial maynot exceed $50,000.
(19) All arbitration awards issued under this section shall bear postjudgment interestpursuant to Section 15-1-4.
Amended by Chapter 217, 2010 General Session