Question

There was a dispute between an automobile insurance company and its insured concerning value in the loss of a truck. The insurance policy required arbitration of disputes. Each party selected an arbitrator; then these two, when unable to agree, selected a third party as umpire. The umpire, without consulting anyone or receiving any testimony, fixed the value of the loss. If challenged, will a court set aside this award?Why or why not?

Answer 1

Answer: The court has no reason to set aside this award.

Step-by-step explanation:

According to the facts of the case, the arbitrators for both parties were unable to decide and therefore they selected another third person which is the umpire) to help decide on the matter.

Under these circumstances, the third person who is the umpire becomes the chair and will act as a trial court. The umpire award is identical to a ruling given by the trial court and is enforced. The third party that is, the umpire isn't enforced to give any explanation or discussion before giving the award. In case the award isn't followed by any of the parties, it can be enforced by the court. The court has no reason to set aside this award.