Bonds v. Farmers Ins. Co. of Oregon

In this case, we must decide whether defendant, Farmers Insurance Company, “formally instituted arbitration proceedings,” ORS 742.504(12)(a)(B), by sending to plaintiff, its insured, a letter stating, “Should we disagree on the liability/damages owed by the underinsured motorist, [defendant] consents to submit this matter to binding arbitration,” and then notifying plaintiff that it did, in fact, disagree on damages. The trial court ruled that the letter and subsequent notice formally instituted arbitration proceedings and that, therefore, they tolled the two-year limitation period during…