State Farm Mutual Automobile Insurance Company has taken legal action against Nationwide General Insurance Company, accusing the latter of failing to honor an arbitration award. The complaint was filed by State Farm in the Court of Common Pleas of Allegheny County, Pennsylvania, on November 4, 2024. The dispute arises from a car accident involving insured parties from both companies.
The incident occurred on September 8, 2023, when vehicles insured by State Farm and Nationwide were involved in a collision. Following the accident, State Farm sought to recover damages through subrogation after compensating its insured for the losses incurred. Both insurance companies are members of Arbitration Forums Inc., which mandates that such disputes be resolved through binding arbitration.
On March 20, 2024, State Farm initiated an arbitration claim against Nationwide with Arbitration Forums Inc., which was assigned Docket Number A240274B190-C1-D1. The arbitration concluded on May 11, 2024, with an award rendered in favor of State Farm for $163.76. According to AFI Rule 5-1, Nationwide was required to pay this amount within thirty days following the publication of the award on May 23, 2024.
Despite repeated demands for payment by State Farm, Nationwide failed to settle the awarded amount within the stipulated time frame. Furthermore, Nationwide did not submit any written notice challenging the award based on clerical or jurisdictional errors as permitted under AFI Rule 4-2. Consequently, State Farm contends that Nationwide breached its contractual obligations under the rules and agreements established by Arbitration Forums Inc.
State Farm is now seeking a judgment from the court for the full amount of $163.76 along with attorney’s fees, interest, and costs associated with pursuing this legal action as per AFI Rule 5-2(d). The company argues that it has fulfilled all necessary conditions precedent to filing this lawsuit and requests additional relief deemed equitable and just by the court.
Representing State Farm is attorney Robert W. Allen from Gluck & Allen LLC located in Toms River, New Jersey. The case is being heard in front of judges at the Court of Common Pleas in Allegheny County under Case ID: [Not Provided].