United States District Court, D. Arizona
DOUGLAS L. RAYES, UNITED STATES DISTRICT JUDGE
Before the Court is Defendant Travelers Home and Marine Insurance Company’s Motion to Dismiss or, in the Alternative, to Stay All Proceedings and Compel Arbitration. (Doc. 8.) Having considered the motion, Plaintiff Diana Okabayshi’s response, (Doc. 11), and Defendant’s reply, (Doc. 13), the Court grants Defendant’s motion.
In April 2012, Plaintiff was involved in a motor vehicle collision with non-party Brandy Jean Holbrook. (Doc. 1-1, ¶ 6.) Holbrook’s insurance provided bodily injury coverage of $25, 000 per person, which it tendered to Plaintiff to resolve the bodily injury claims against Holbrook. (Id., ¶¶ 7-8.) Plaintiff alleges that this amount is inadequate to fully compensate her for physical, emotional, and economic injuries resulting from the collision. (Id., ¶ 10.)
At the time of the collision, Plaintiff was insured by Defendant. (Id., ¶ 11.) The policy provided underinsured motorist coverage with a $100, 000 per person limit, subject to a $300, 000 aggregate limit per occurrence. (Id.) The policy also contains an arbitration clause governing coverage disputes, which states:
If we and an “insured” do not agree:
1. Whether that person is legally entitled to recover damages under this endorsement; or
2. As to the amount of damages;
either party may make a written demand for arbitration. In this event, each party will select an arbitrator. The two arbitrators will select a third. If they cannot agree within 30 days, either may request that selection be made by a judge of a court having jurisdiction. Each party will:
1. Pay the expenses it incurs; and
2. Bear the expenses of the third arbitrator equally.
Unless both parties agree otherwise, arbitration will take place in the county in which an “insured” lives. Local rules of law as to procedure and evidence will apply. A decision agreed to by two of the arbitrators will be binding as to:
1. Whether the “insured” is legally entitled to recover damages; and
2. The amount of damages. This applies only if the amount does not exceed the minimum limit for bodily injury liability specified by the financial responsibility law of Arizona. If the amount exceeds that limit, either party may demand the right to a trial. This demand must be made within 60 days of the arbitrators’ decision. If this ...