Liberty Mutual Insurance v. Tavarez

OPINION

FLANDERS, J.

When an insurer providing uninsured motorist (UM) coverage has denied its insured’s claim and failed to arbitrate the same, choosing instead to litigate whether the UM claim is covered by the policy, can the court that declared the existence of coverage for the claim — and then ordered the parties to arbitrate it — enter a judgment for the insured that includes prejudgment interests and costs beyond the policy limits when it confirms the arbitrators’ award? For the reasons explained herein, we answer this question in the affirmative.

The plaintiff, Liberty Mutual Insurance…