Certain Underwriters at Lloyd’s of London v. Bart Enterprises
In these consolidated actions, appellants Certain Underwriters at Lloyd’s of London, etc. (Underwriters) appeal from the trial court’s order denying their petitions to compel arbitration pursuant to Code of Civil Procedure section 1281.2[1] and the terms of a marine insurance policy issued to respondent Bart Enterprises International, Ltd. After the insured property was allegedly stolen in transit, a dispute arose between the parties over the actual value of the property and the proper method of valuation under the policy. Underwriters filed a petition to compel an appraisal of the value of the property pursuant to an arbitration clause in the policy. In response, Bart filed a declaratory relief action seeking an order that the policy was a valued policy under the Insurance Code and that the valuation stated in the policy was conclusive between the parties in the adjustment of the loss.[2] The trial court denied Underwriters’ petitions to compel arbitration, finding that the dispute about whether the policy was a valued or open policy was the proper subject of an action for declaratory relief. We conclude that the trial court should have granted the petitions, and pursuant to section 1281.2, subdivision (c), exercised its discretion to decide whether to stay either the judicial or appraisal proceedings. We therefore reverse and remand for further proceedings consistent with this opinion.
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