Arizona Court rejects collateral modification of an arbitration award
Cundiff and State Farm arbitrated the amount of damage suffered by Cundiff as a result of an automobile accident while working. Neither party challenged the award or sought confirmation. The policy contained a provision allowing State Farm to offset benefits received from worker's compensation from any policy claim. Cundiff sued State Farm, contending that she was entitled to recover the full amount of her loss, without an offset for the workers' compensation benefits. The Court determined that the full amount of Cundiff's loss, at least implicitly including the offset issue, had been litigated in the arbitration, and that Cundiff's failure to follow Arizona law to seek modification of the arbitration award barred her action, justifying summary judgment in favor of State Farm. Cundiff v. State Farm Mut. Auto. Ins. Co., Case No. 2005-0209 (Az. Ct. App. Oct. 27, 2006).
