Watts v. Department of State

On October 15, 1966, plaintiffs sustained personal injuries in an automobile accident. At the time of the accident they were insured against injuries sustained by virtue of uninsured motorist coverage in their own insurance policy. This policy afforded benefits not to exceed $10,000 for each of the two plaintiffs.

The plaintiffs instituted arbitration proceedings against their carrier pursuant to the provisions of the policy. The parties subsequently entered into a voluntary settlement for less than policy limits and discontinued the arbitration proceedings.

On August 17, 1970, the plaintiffs…