Court Opinion

ID: 9679068
Source: CourtListenerOpinion
Date Created: 2023-08-24 06:39:44.740423+00
Date Added: 2024-06-11T18:17:09.966697
License: Public Domain

On Rehearing
SIMPSON, Justice.
With respect to the plea in abatement, counsel for appellant argues we have departed from the holding in McCullough v. Mill Owners Mutual Fire Ins. Co., 243 Ala. 67, 8 So.2d 404, which in effect held that a good plea in abatement need not allege a demand was made for arbitration. We make this brief response to 'demonstrate the difference in the two cases.
The arbitration provision of the policy in McCullough’s case was not the same as the one here concerned. McCullough’s policy contained no provision requiring a written demand for arbitration after disagreement, its requisite for arbitration being that there should be a disagreement as to the amount of loss. So viewed, it was properly held that resort to arbitration after such disagreement was the precedent averment for a proper plea in abatement without alleging any demand.
*641The policy in the instant case as regards arbitration, however, required as predicate to invoke its provisions that there not only be a failure on the part of the parties to agree as to the actual cash value or the amount of the loss, but also in such event written demand for arbitration. The pertinent language of the policy is as follows: “In case the insured and this company shall fail to agree as to the actual cash value or the amount of the loss, then, on the written demand of either, * * * ” arbitration to settle the disagreement should be had. Hence the difference in the two cases.
It quite clearly appears the plea lacks sufficient allegations within the general rule of the authorities; that is, the plea makes no showing that the conditions requiring arbitration ever transpired — viz., a failure to agree and a written demand thereafter to arbitrate — so as to make available such plea in abatement. The pleader was content merely to aver that no agreement as to amount of loss was made and no arbitration was had. This does not suffice to meet the provisions of the policy. The arbitration clause was conditioned: (1) on a failure to agree, which-of necessity presupposes that there had been an effort made to agree and a disagreement ensuing therefrom, since otherwise there would be no purpose to arbitrate; that provision presupposes an actual, bona fide disagreement as to the amount of loss, Insurance Co. of North America v. Baker, 84 Colo. 53, 268 P. 585, for, “under provisions thus conditioned, unless there has been such a disagreement, it is not necessary to resort to an appraisement or arbitration before suing on the policy”, 45 C.J.S., Insurance, § 1112, page 1355; (2) a written demand in event of such failure to agree, in which case “it is generally held that [such] a provision of a property insurance policy * * * does not require an appraisal as a condition precedent to a recovery on a policy unless a written request has been made by one of the parties”, 29 Am.Jur. 929, § 1244.
We think the foregoing clearly demonstrates the demurrer to the plea was properly sustained.
As regards the other propositions argued on this rehearing, we are not in agreement,'but are content to rest on our original decision.
Opinion extended and rehearing denied.
LIVINGSTON, C. J, and FOSTER, and GOODWYN, JJ., concur.