This article is a companion piece to On Subrogation: Arbitration Forums for Subrogation Claims, in which RG subrogation attorney Jason Sullivan speaks on the role of arbitration forums in the insurance subrogation process. Follow Jason as he discusses 5 important Affirmative Defense claims that come up in subrogation arbitration forums, and how each company’s role in a given case can inform an insurer on whether arbitration or lawsuit gives them the best chance of total recovery.
Arbitration Forum Jurisdiction in Cases of Insurance Subrogation
Let’s take a quick look at the highlights of Jason’s talk:
- Affirmative Defense #1: The party is not a signatory, and therefore does not fall under Arbitration Forum’s jurisdiction.
- Affirmative Defense #2: If the liability carrier you are pursuing sent their insured a letter stating that there was no coverage for the incident in question, Arbitration Forum has no jurisdiction
- Affirmative Defense #3: Arbitration Forums does not have jurisdiction in subrogation cases with $100,000 or more in damages , except in special cases.
- Affirmative Defense #4: Arbitration Forums may not give awards that exceed the liability insurer’s policy limit.
How should these defenses affect an insurer’s choice to arbitrate or take the matter to court? An important factor at play among all these defenses is statute of limitations. There are also stipulations in arbitration forums that can limit or eliminate your ability to pursue a responsible party after you arbitrate, should either party withdraw from the arbitration. Jason breaks down these complicated factors inherent to subrogation arbitration and lays out possible strategies for insurers deciding between arbitration forums and lawsuits.