United Services Automobile Assn. v. Superior Court

Defendant and petitioner United Services Automobile Association (US A A) seeks a writ of mandate directing the respondent superior court to enter a declaratory judgment in its favor on plaintiff and real party in interest Eleanor Ann Compton’s (Compton) action to enforce an insurance policy provision for trial de novo following an underinsured motorist arbitration.

The issue presented is whether an insurance policy provision for trial de novo after an underinsured motorist arbitration conflicts with statute and violates public policy.

Because such provision conflicts with statute it is unenforceable, irrespective of whether it is the insurer or insured which is seeking trial de novo. We therefore direct the issuance of a writ of mandate.

Factual And Procedural Background

Compton was insured by USAA under an automobile policy which included $300,000 in underinsured motorist coverage. The policy period was February 22, 1987, to August 22, 1987. On July 6, 1987, Compton was involved in an automobile accident. An underinsured motorist arbitration was held and on July 11, 1989, the arbitrator found damages in the amount of $100,000, less $15,000 received from the opposing…