Craven
was injured by a hit-and-run driver and spent almost a month in the
hospital.She didn't get
around to filing a claim with her insurance company, Royal-Globe, until
four months after the accident. Royal-Globe denied her claim because she
didn't report in a timely manner.Craven filed a demand for arbitration, and Royal-Globe sued for a
declaration that they had no obligation to submit to arbitration.
The
Royal-Globe policy said that all hit-and-run claims must be reported
within 24-hours.
Craven
was unconscious in intensive care during those 24-hours!
The
insurance company did pay for most of her damages, they only refused to
pay the uninsured motorist deductible.
The
Trial Court found for Craven. Royal-Globe appealed.
The Trial
Court found that Craven should be excused from the 24-hour requirement
because of her injuries.
Royal-Globe
argued that, even if she was excused for the time she was in intensive
care, the 24-hour clock should be reimposed once she was released from
the hospital.
The
Appellate Court reversed and found that Royal-Globe was
not liable to Craven.
The
Appellate Court found that even if the 24-hour deadline is not met, the
policy requires prompt notification.
Craven
was out of the hospital for more than three months before she bothered
to call Royal-Globe about the accident.
The
Court found that the uninsured motorist provision was a condition, of the contract.Breaching a condition of a contract excuses the other party from
performance.
