227 Pa. Super. 537 | Pa. Super. Ct. | 1974
Opinion by
The issue in this case is whether it was error to confirm the order of a common law arbitration panel that the award to appellant be placed in escrow pending the outcome of an action brought by appellant against a third party. We conclude that the panel’s order was permitted by the Accidental Claims Tribunal Rules of the American Arbitration Association, to which this claim was submitted pursuant to appellant’s insurance policy with appellee. We therefore affirm.
Appellant concedes that the arbitration was a common law arbitration and that the arbitrators acted only after giving him a fair hearing. Nor does he argue that we should depart from the rule that in a common law arbitration the decision of the arbitrators is binding and cannot be attacked unless it can be shown by clear, precise, and indubitable evidence that a party was denied a hearing, or that there was fraud, misconduct, or other irregularity that caused the rendition of an unjust, inequitable, or unconscionable award. Allstate
This contention misconceives the type of irregularity contemplated by the rule. The term “irregularity” does not refer to the result of an arbitration, i.e., the award, but to the process employed in reaching that result. In any event, there was no irregularity here, nor was the award in any way defective, for it was within the powers conferred upon the arbitrators. Sley System Garages v. Transport Workers Union of America, 406 Pa. 370, 178 A. 2d 560 (1962).
The claim was submitted to the American Arbitration Association to be decided in conformity with its rules. Section 34 of those rules provides: “Scope — The Arbitrator in his Award may grant any remedy or relief which he deems just and equitable and within the scope of the agreement of the parties . . . .” Appellant’s insurance policy with appellee contains a clause that “[i]n the-event of payment to any person under this endorsement. . . such person shall hold in trust for the benefit of the company all rights of recovery which he shall have against such other person or organization because of the damages which are subject of claim made under this endorsement.” Appellant concedes (Appellant’s Brief at 5) “that if [appellee] pays the $10,000 to the Appellant, it would have a right to assert its lien against any proceeds that Appellant may recover from any other person.” The award protects that lien and precludes the danger of a double recovery; and although
The order of the court below is affirmed.
The court did modify the award in one respect. The modification was to appellant’s advantage in that it changed the words of the condition from “In the event of a verdict in favor of Michael Press . . .” to “In the event of a verdict and payment thereof in favor of Michael Press . . . .” Neither party has challenged this modification.