Arbitration Starts When Statutory Procedures Are
Formally Executed or Parties Agree to Another Procedure
Bonds v. Farmers
Ins. Co. of Oregon, --- P.3d ---- (Or.App. Apr 01, 2009)
The trial court held that Farmers Insurance
Company, “formally instituted arbitration proceedings,” tolling the
statute of limitations by sending to plaintiff, its insured, a
letter stating, “Should we disagree on the liability/damages owed by
the underinsured motorist, [defendant] consents to submit this
matter to binding arbitration,” and then notifying plaintiff that it
did, in fact, disagree on damages.
The Court of Appeals reversed finding that
neither party initiated arbitration in the manner prescribed by the
arbitration statute, and the parties did not agree to some other
procedure.