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The Idaho Supreme Court held that a trial court properly refused to enter judgment on an arbitration award where issues affecting liability, including the availability of any offsets, were not submitted to the arbitrator.
In Norton v. California Insurance Guarantee Ass'n, No. 31558, 2007 WL 528532 (Idaho Feb. 22, 2007), Norton sought underinsured motorist benefits from his insurance carrier. After Norton's insurance carrier went bankrupt, his underinsured motorist claim was referred to the California Insurance Guarantee Association (CIGA).
When negotiations failed, Norton and CIGA submitted their dispute to arbitration. The arbitrator awarded Norton $425,474.08. Norton filed a motion to confirm the award. The trial court refused to enter judgment on the award pending a determination on whether CIGA was entitled to any offsets.
On appeal, the Court held that the trial court properly refused to enter judgment on the award because the arbitrator ruled on an issue not submitted to him by entering an award in Norton's favor. Specifically, the arbitration agreement limited the arbitrator to resolving questions of causation and damages, not whether CIGA was entitled to any offsets.
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