UP argued that the policy at issue contained a compulsory arbitration clause which Insurance Company ignored, forcing insured to incur expenses for litigation as well as loss of time. Under these circumstances, damages for breach of contract are insufficient. Only a tort rationale will provide compensation for the consequential damages suffered by the policyholder.
Court California Court of Appeal, 4th District, Division 2
Case Number E039995
- Arbitration Clause
- Tort Damages