Originally from Dispute Resolution Journal

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THIS review covers decisions in civil, commercial and labor-management cases, arranged under six headings: I. The Arbitration Clause, II. The Arbitrable Issue, III. The Enforcement of Arbitration Agreements, IV. The Arbitrator, V. The Proceedings, VI. The Award.

I. THE ARBITRATION CLAUSE

ENFORCEMENT OF ARBITRATION UNDER UNINSURED MOTORIST POLICY VIOLATES LOUISIANA INSURANCE CODE IN THAT ITS EFFECT IS TO DEPRIVE COURTS OF JURISDICTION OF INSURED'S ACTION AGAINST INSURER. The relevant provision. Act 118 amending Subsection D of LSA-R.S. 22:1406, reads: "D. (5) The coverage required under this subsection may include provisions for the submission of claims by the assured to arbitration; provided, however, that the submission to arbitration shall be optional with the assured, shall not deprive the assured of his right to bring action against the insurer to recover any sums due him under the terms of the policy, and shall not purport to deprive the courts of this state of jurisdiction of actions against the insurer." The court found that the legislative intention was to make arbitration clauses "absolutely binding on the insurer but optionally binding on the assured," and therefore the insurance company could not compel arbitration. Macatuso v. Watson, 171 Sa.2d 755 (La. App., Bamette, J. pro tem.).