Schumacher v. Ayerve

Opinion

JOHNSON, J.

In this case the trial court allowed an offset against an arbitration award in favor of appellant for medical payments previously paid by respondent’s insurer and ordered that satisfaction of judgment be entered.

[1862]

We find the trial court had no basis for finding the judgment was in fact satisfied and reverse the judgment.

Facts and Proceedings Below

Appellant filed a personal injury action as a result of an automobile accident. Appellant, Ursula W. Schumacher, was a passenger in a vehicle driven by respondent, Alicia Pilar Ayerve.

After appellant filed suit, respondent’s insurer issued two drafts to appellant totalling the full $5,000 available under the medical payment provision of respondent’s insurance policy.

Pursuant to court order, the matter was arbitrated on April 26, 1990, before retired Judge Howard D. McClain. Respondent stipulated to liability for the accident in exchange for appellant’s promise not to seek punitive damages. Consequently, the only issue submitted for arbitration was the amount of appellant’s damages. Although a representative of the insurer was present at the arbitration proceedings, no evidence was presented of the earlier $5,000 payment for medical expenses.

On May 1, 1990, the arbitrator rendered an award for appellant and against respondent in the amount of $35,000. Neither party requested a trial de novo within the statutory 30 days. (Code Civ. Proc., § 1141.20, subd. (a).) Consequently, on June 1, 1990, judgment was entered in favor of appellant and against respondent in the amount of $35,000.

On June 11, 1990, respondent’s insurer sent appellant a draft in the amount of $30,000, representing the amount of the award, less the previous medical payment for $5,000. However, appellant refused to execute a satisfaction of judgment, claiming entitlement to the full $35,000 judgment. In October 1990, respondent again requested that appellant execute a satisfaction of judgment. Appellant responded by providing a partial satisfaction of judgment, acknowledging $30,000 in payment against the award and payment of costs.