Recently, the Minnesota Court of Appeals affirmed the entry of an arbitration award against North Star Taxi. North Star and Progressive were parties to a voluntary arbitration agreement for all property damage and business-interruption-loss claims through intercompany arbitration before Arbitration Forums, Inc. After a dispute arose regarding an auto accident between one of Progressive’s insureds and one of North Star’s bailee-independent contractors, an arbitrator ruled that each of the two drivers were 50% responsible for the accident and reduced North Star’s undisputed damages by 50% based upon that negligence. North Star moved to vacate the award, and the Minnesota state district court ruled that North Star had waived its right to seek vacation of the award by entering into the arbitration award. North Star appealed (now also seeking attorneys’ fees), and the Court of Appeals concluded that under the Minnesota Uniform Arbitration Act, North Star had contractually waived its right to judicial review of the award. Accordingly, the award was confirmed and North Star’s motions were denied. North Star Taxi v. Progressive American Insurance Co., No. 11-757 (Minn. Ct. App. Jan. 30, 2012).
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Arbitration award in favor of progressive affirmed
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