Lauren Cohen just won a most unusual trial. Lauren represented Alicia, who was injured when the defendant, Lora, made a left hand turn in front of the car that Alicia was a passenger in. Alicia’s injuries were soft tissue cervical and lumbar strains and the total medical bills were approximately $6,270.00. On June 28, 2011, the matter went to mandatory arbitration in the Court’s Municipal Department. Lauren presented the evidence, the arbitrator ruled in plaintiff’s favor and awarded $14,252.00.
Under mandatory arbitration procedures, the defendant can reject an arbitration award by paying a small fee and the case then proceeds to a regular jury trial. But due to the fact that the defendant, Lora, failed to personally appear at the arbitration, Lauren filed a motion to prevent the rejection which was granted. We expected the award to then be paid by the insurer, American Service Insurance Company, but instead they filed a declaratory judgment action seeking to disclaim the coverage on the basis that their insured, Lora, had “failed to cooperate” with her defense by failing to appear at the mandatory arbitration.
Lauren, however, first defeated American Service Insurance’s motion to dismiss and then defeated American Service Insurance at trial by showing that Lora had cooperated with American Service Insurance at every stage of the case – answering interrogatories, appearing at the deposition, and even arriving early to her deposition so that the attorney could prepare her. Lauren also established that American Service Insurance’s lawyers had sent a letter advising Lora of the arbitration more than two months in advance of the arbitration to an address that Lora no longer lived at, so there was a question of improper notice.
Thus, American Service Insurance was not able to prove that Lora willfully refused to cooperate in the defense of this case and Alicia prevailed.