Question: Is the provision that requires arbitration and then permits appeal by either party void as unconscionable? Ruth Klopp had auto insurance with Worldwide. She was

Is the provision that requires arbitration and then permits appeal by either party void as unconscionable?

Ruth Klopp had auto insurance with Worldwide. She was injured in a serious accident that left her with permanent neck and back injuries. The other driver was uninsured, so Klopp filed a claim with Worldwide under her “uninsured motorist” coverage. Her policy required arbitration of such a claim, and the arbitrators awarded Klopp $90,000. But the policy also stated that if the arbitrators awarded more than the statutory minimum amount of insurance ($15,000), either side could appeal the award and request a full trial. Worldwide appealed and demanded a trial.
In the trial court, Klopp claimed that the appeal provision was unconscionable and void. The trial court agreed and entered judgment for the full $90,000. Worldwide appealed.

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Holding Judgment for Klopp affirmed Public policy favors arbitration But here although the contract ... View full answer

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