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ALLEN D. HOUSTON v. NATIONAL MUTUAL INSURANCE COMPANY (12/04/86)

filed: December 4, 1986.

ALLEN D. HOUSTON
v.
NATIONAL MUTUAL INSURANCE COMPANY, APPELLANT



Appeal from the Judgment entered January 28, 1986 in the Court of Common Pleas of Montgomery County, Civil No. 85-09281.

COUNSEL

Joseph A. Whip, Jr., Norristown, for appellant.

Bernard V. DiGiacomo, Norristown, for appellee.

McEwen, Del Sole and Tamilia, JJ. Tamilia, J., concurs in the result.

Author: Del Sole

[ 358 Pa. Super. Page 619]

This is an appeal from the judgment which resulted from an order denying appellant's petition to vacate or modify an arbitration award. We affirm.

On February 23, 1985 appellee was involved in an automobile accident in which he sustained injuries. He accepted $15,000 from Northland Insurance Company which represented the limits of a policy carried by the operator of the other vehicle involved in the accident.

Pursuant to his own policy with appellant Nationwide Mutual Insurance Company, appellee filed an underinsured motorist claim. The Nationwide policy provides for underinsured benefits in the amount of $25,000 per person for

[ 358 Pa. Super. Page 620]

    each of two automobiles, for a total of $50,000.*fn1 The policy additionally provides that, "[a]ny damages payable to or for the insured under this coverage will be reduced by any sums paid by or for any liable parties." Unable to agree on either the amount of damages suffered or whether the amount received from Northland should be offset against the amount of damages suffered or offset against Nationwide's liability, appellee filed a petition to compel arbitration. The Nationwide policy provides for arbitration in accordance with the Pennsylvania Uniform Arbitration Act, 42 Pa.C.S.A. ยง 7301 et. seq., "[i]f we and the insured do not agree about the insured's right to recover damages or the amount of damages . . . ."

The arbitrators determined appellee suffered $60,000 in damages. Furthermore, it was held that the $15,000 received from Northland must be deducted from the $60,000 damages suffered and not the liability of Nationwide.

Nationwide filed a petition to vacate or modify the award. The trial court dismissed the ...


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