Judge: Elaine Lu, Case: 21STCV42004, Date: 2022-09-26 Tentative Ruling
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Case Number: 21STCV42004 Hearing Date: September 26, 2022 Dept: 26
|
MARTHA AGUIRRE
DE ESCOBAR, Plaintiff, vs. progressive insurance company of california; progressive west
insurance company, et
al., Defendants. |
Case No.: 21STCV42004 Hearing Date: September 26, 2022 [TENTATIVE] order RE: Defendant progressive west insurance
company’s motion to stay ACTION |
Background
On November 11, 2021, Plaintiff
Martha Aguirre De Escobar (“Plaintiff”) filed the instant action against
Progressive West Insurance Company (“Defendant”) and Progressive Insurance
Company of California[1]. The complaint asserts two causes of action
for (1) Breach of Written Contract and (2) Violation of Unfair Competition
Law. The complaint alleges that
Plaintiff had auto insurance with Defendant that provided for Uninsured/ Underinsured
coverage. (Complaint ¶¶ 12-16.) On October 16, 2020, Plaintiff was rear-ended
by another vehicle resulting in significant medical expenses. (Id. ¶¶ 17-18.) The driver of the other vehicles insurance
did not have sufficient insurance to cover the damage of the incident, and the
driver’s insurance tendered the policy limit to Plaintiff. (Id. ¶¶ 19-20.) On July 2021, Plaintiff demanded that Defendant
tender its underinsured limits to Plaintiff or that the matter be set for
arbitration. (Id. ¶ 21.) On September 2021, the matter was sent to
arbitration. (Id. ¶ 24.) As of filing Defendant has refused to make
Plaintiff whole. (Id. ¶ 29.)
On January 4, 2022, Defendant filed
the instant motion to stay the action.
No opposition or reply has been filed.
Legal Standard
“Trial courts generally have the inherent power to
stay proceedings in the interests of justice and to promote judicial efficiency.” (Freiberg v. City of Mission Viejo (1995)
33 Cal.App.4th 1484, 1489.) A stay of
proceedings is an equitable remedy, the issuance of which rests in the Court's
discretion. (Webster v. Superior
Court (1988) 46 Cal.3d 338, 345.)
Discussion
Defendant asserts that the instant action
must be stayed pending the ongoing arbitration of the coverage dispute between
Plaintiff and Defendant.
“Any party to a judicial proceeding ‘is
entitled to a stay of those proceedings whenever (1) the arbitration of a
controversy has been ordered, and (2) that controversy is also an issue
involved in the pending judicial action.’ [Citation.] ‘The purpose of the
statutory stay is to protect the jurisdiction of the arbitrator by preserving
the status quo until arbitration is resolved.’ [Citation.] ‘In the absence of a stay, the continuation of
the proceedings in the trial court disrupts the arbitration proceedings and can
render them ineffective.’ [Citation.]” (Heritage
Provider Network, Inc. v. Superior Court (2008) 158 Cal.App.4th 1146,
1152.)
Here, the Underinsured Motorist Coverage
policy provides that any dispute of coverage is to be submitted to binding
arbitration. (Di Palma Decl. ¶ 3, Exh.
1.) On September 2021, Plaintiff
demanded that the matter be sent to arbitration due to the parties’ dispute in
coverage under the Underinsured Motorist Coverage policy over the October 16,
2020 accident. (Di Palma Decl. ¶¶
5-6.) The arbitration hearing is
currently set for October 24, 2022.
(Defendant’s Case Management Statement filed 9/9/22.) Moreover, the complaint concedes that there is
pending arbitration over the denial of coverage for the Underinsured Motorist
Coverage policy. (Complaint ¶ 24.)
Accordingly, given the pending arbitration
of the parties’ dispute over the Underinsured Motorist Coverage for the October
16, 2020 accident, the Court finds that a stay of the action pending the
arbitration is warranted.
Conclusion and ORDER
Based
on the foregoing, Defendant Progressive West Insurance Company’s motion to stay
proceedings is GRANTED.
The
instant action is stayed in its entirety pending resolution of the arbitration
between the parties. A status conference
is set for September 26, 2023 at 8:30 am.
If the arbitration concludes prior to the status conference, then within
45 days of the conclusion of the arbitration, all parties are ordered to file
and serve either a stipulation or ex parte application to advance the status
conference.
The
Moving party is to give notice of this order and file proof of service of such.
DATED: September 26, 2022 ___________________________
Elaine Lu
Judge
of the Superior Court
[1] On June 3, 2022, Plaintiff
dismissed Progressive Insurance Company of California without prejudice. (Minute Order 6/3/22.)