154 A.3d 1124
Del.2017Background
- Victoria and Nationwide sought subrogation recovery from the City of Wilmington for PIP benefits paid for motor-vehicle accidents involving City police officers.
- Arbitration panels (Department of Insurance) awarded Victoria $30,000 and Nationwide $15,000.
- The City, a self-insurer, filed de novo appeals in Superior Court from both arbitration awards.
- Nationwide and Victoria moved to dismiss for lack of subject-matter jurisdiction, arguing no statutory right to appeal from mandatory arbitration between insurers and self-insurers.
- The Superior Court dismissed the appeals, reasoning (1) disputes governed by 21 Del. C. § 2118(g)(3) are mandatory and treat self-insurers like insurers, and (2) the appeal right in § 2118(j)(5) applies only to optional arbitration under subsection (j).
- The Delaware Supreme Court reviewed statutory text and reversed, holding that § 2118(g)(3) requires arbitration "in the same manner" as subsection (j), which includes the § 2118(j)(5) de novo appeal right.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a losing party may appeal de novo to Superior Court from mandatory arbitration of disputes between insurers and self-insurers under 21 Del. C. § 2118 | City: § 2118(g)(3) mandates arbitration "in the same manner" as subsection (j), and (j)(5) expressly grants a de novo appeal right; so the City may appeal | Insurers (Victoria/Nationwide): § 2118 is silent as to insurer/self-insurer appeals; (j)(5)'s "optional" language and context limit (j) appeals to insured claimants, excluding mandatory (g)(3) disputes | The Court held that § 2118(g)(3) unambiguously incorporates subsection (j) "in the same manner," including (j)(5)'s de novo appeal right; Superior Court dismissal reversed |
Key Cases Cited
- State Dep’t. of Corr. v. Worsham, 638 A.2d 1104 (Del. 1994) (administrative appeals require statutory authorization)
- Rapposelli v. State Farm Mut. Auto. Ins. Co., 988 A.2d 425 (Del. 2010) (statutory interpretation reviewed de novo)
- Lawson v. State, 91 A.3d 544 (Del. 2014) (statutory ambiguity standard)
- CML V, LLC v. Bax, 28 A.3d 1037 (Del. 2011) (textualist approach to avoid absurd results)
- Giuricich v. Emtrol Corp., 449 A.2d 232 (Del. 1982) (no construction when statute is clear)
- New Hampshire Ins. Co. v. State Farm Ins. Co., 643 A.2d 328 (Del. Super. 1993) (prior Superior Court decision on insurer-insurer arbitration appeals)