When family members living in the same household are involved in a car accident, Utah law provides a mechanism to resolve disputes without going to court. This is known as inter-family arbitration or covered person arbitration and is governed by Utah Code 31A-22-303. Below is a breakdown of the key aspects:
What is “Covered Person” Arbitration?
- Covered Person Definition:
A “covered person” includes the named insured and family members related by blood, marriage, adoption, or guardianship who reside in the same household. It also covers those temporarily living elsewhere but who usually reside in the same household. - Purpose of Arbitration:
This arbitration process is designed to handle claims exclusively between covered persons, such as family members suing one another for injuries caused in a car accident.
Litigation vs. Arbitration Options
- Election by Claimant:
- The claimant can choose between binding arbitration or litigation through a judge or jury.
- Once litigation is elected, switching to arbitration requires written consent from both parties and the defendant’s liability insurer.
- Binding Nature of Arbitration:
- Arbitration awards are final and cannot be appealed through a de novo process in Utah District Court unless procured by fraud, corruption, or undue means.
Arbitration Panel Process
- Composition of the Panel:
- Typically, a panel consists of three arbitrators unless otherwise agreed in writing.
- Each party selects one arbitrator, and these arbitrators select a third.
- Cost Sharing:
- Each party pays the fees of the arbitrator they select and shares the cost of the third arbitrator equally.
- Discovery Rules:
- Discovery is conducted in accordance with Rules 26–36 of the Utah Rules of Civil Procedure.
- All discovery disputes are resolved by the arbitration panel.
Arbitration Award Details
- Disclosure of Insurance Coverage:
- The existence of liability insurance can be disclosed to the arbitration panel, but the policy limits cannot be revealed.
- Limits on Awards:
- The arbitration award cannot exceed the liability insurance policy limits, including umbrella policies.
- If the initial award exceeds these limits, it is reduced to align with policy coverage.
- Good Faith Requirement:
- If a party fails to pursue, defend, or bring the action in good faith, the arbitration panel may impose reasonable fees and costs on that party.
Advantages of Arbitration
- Avoiding Court:
Arbitration keeps family disputes out of public courtrooms, preserving relationships and privacy. - Final and Efficient Resolution:
The arbitration process is binding, faster, and often less costly than litigation.
Key Considerations
- The arbitration panel’s decision is final and binding, with limited grounds for appeal.
- Parties must comply with applicable arbitration rules under Title 78B, Chapter 11 (Utah Uniform Arbitration Act) unless agreed otherwise. Often the custom and practice of Utah car accident arbitration is very informal. All evidence comes in, but the weight of the evidence may be argued by the parties.
- Normal discovery processes ensure that all parties have access to evidence and can prepare adequately.
Legal Help for Family Accident Claims
If you’ve been involved in a car accident with immediate family members and need help navigating arbitration or litigation, contact Utah Car Accident Attorney Jake Gunter at (801) 373-6345 for a free consultation.
Call/Text Jake Gunter Today!