|
A federal court in Nevada held that a party's decision to continue with arbitration, despite the fact that the other party breached the arbitration agreement, waives the right to later object to enforcement of the arbitration stipulation.
In Sipple v. Allstate Ins. Co., No. 2:05-CV-231-BES-PAL, 2006 WL 3825114 (D. Nev. Dec. 22, 2006), Jerry Sipple was involved in an automobile accident with an underinsured motorist. Sipple brought suit against his insurer, Allstate, to recover underinsured motorists benefits, and the parties signed a stipulation to resolve the dispute through arbitration.
When Sipple filed a motion to enforce the stipulation, Allstate opposed, claiming that Sipple breached the arbitration agreement by mentioning receipts of money from the other motorist's insurance company in his arbitration brief. The parties had discussed this breach at arbitration and decided to proceed with arbitration regardless.
In granting Sipple's motion to enforce the stipulation, the Court held that although Sipple violated the agreement, this violation was immaterial. Additionally, the Court held that Allstate had waived its right to object to the arbitration stipulation by continuing with arbitration.
Subscribe to a free weekly update on ADR case law and
legislation
|