Michigan Court of Appeals; Docket No. 113604; Unpublished
Judges Wahls, Marilyn Kelly, and Allen; Unanimous; Per Curiam
Official Michigan Reporter Citation: Not Applicable; Link to Opinion 
STATUTORY INDEXING:
Not Applicable
TOPICAL INDEXING:
Uninsured Motorist Benefits: Uninsured Motorist Coverage in General
Uninsured Motorist Benefits: Arbitration of Uninsured Motorist Claims
CASE SUMMARY:
In this unanimous per curiam Opinion, the Court of Appeals held that plaintiff’s claim for uninsured motorist benefits was properly arbitrable in spite of the fact that the defendant UM insurer contended that no arbitration could occur until the tortfeasor's insurance policy was determined to be inapplicable to the loss. The court held that the dispute over whether the tortfeasor's coverage is applicable is one that "is clearly arbitrable." The court held: "An issue is arbitrable if (1) there is an arbitration agreement between the parties, and (2) the issue is arguably within the arbitration agreement, and (3) the issue is not expressly exempt by the terms of the contract.... Frankenmuth 'tortfeasor's insurer' denied coverage, or at least arguably denied coverage, and, therefore, plaintiffs are at least arguably entitled to benefits under (the policy). Again, that dispute is clearly arbitrable. Notably, resolution of any dispute over whether Frankenmuth did, in fact, deny coverage can be resolved without reference to the issue of whether Frankenmuth's policy applied to the accident. We hold that the trial court did not err when it ordered the parties to submit their dispute to arbitration."
Therefore, the court ordered the matter to arbitration and noted that the defendant could pursue Frankenmuth in a separate action if it is determined that UM benefits were wrongfully paid.
