The trial court denied the motion to compel arbitration and the Alabama Supreme Court affirmed after stating that A threshold issues of arbitrability must first be determined by the court, not by the arbitrator, unless the contract clearly gives the arbitrator the right to decide arbitrability.
Defendant waives right to arbitrate.
In Richardson v. Liberty National Ins. The court affirmed summary judgment in favor of the insurance company after holding that the plaintiff could not have justifiably relied upon the alleged misrepresentation because the language of the policy itself, as well as a subsequent letter from the defendant, clearly set forth the three year limitation. In Guess v. Thereafter, the trial court reduced that award by the amount that plaintiff had recovered from the other driver. On appeal, the court, after noting that Alabama law neither requires nor precludes such setoffs, held that the defendant insurer was entitled to the setoff under the policy language.