Provo, UT - Low award caps, high arbitration costs, short appeal timelines, and unclear insurance limits have challenged victims seeking justice for small claims through Utah’s legal system.
Fortunately, Utah’s 321 Arbitration statute update gives victims a fairer chance at justice, even with small claims. Kurt London Esq., a managing partner at London Harker Injury Law, guides victims on the key areas in the amendment and how this affects the handling of small insurance claims out of court.
Their Provo personal injury lawyers emphasize that the recent changes provide significant relief for claimants by increasing the monetary cap, clarifying insurance policy limits, and reducing the financial burden of arbitration. These updates ensure a more balanced process for individuals who may have previously been discouraged by the costs and complexities of arbitration.
One of the most impactful changes is the increase in the monetary award cap from $50,000 to $75,000, making arbitration a more viable option for claims that previously fell into a legal gray area. While policy limits still apply, the clarification that the “per person” limit is used prevents insurers from unfairly applying a single policy cap to multiple plaintiffs. This ensures each injured party has access to the full extent of their coverage.
Another major amendment addresses arbitration costs, which have long been a deterrent for plaintiffs. Under the new law, the prevailing party is entitled to recover the full cost of arbitration, including standard Rule 54(d) costs and interest. This shift removes a significant financial risk for claimants and encourages them to seek arbitration without fear of incurring excessive fees if they win their case. The hope is that these changes will make three-panel arbitrations more common, leading to fairer outcomes.
Changes to the appeal process also strengthen the rights of plaintiffs. Previously, appealing an arbitration decision allowed for only 90 days of additional discovery, but the new statute extends that period to 120 days. This gives both sides more time to gather critical evidence, ensuring a thorough review of cases.
Additionally, the financial penalties for unsuccessful appeals are now more stringent. If the appealing party does not achieve at least a 30% improvement over the original arbitration award, they must cover arbitration fees and both pre-and post-judgment interest. For insurance companies, the stakes are even higher; if they appeal and lose, they may owe up to $15,000 above the policy limit or up to the new $75,000 arbitration cap.
With these changes taking effect on May 1, 2024, personal injury claimants in Utah will likely see arbitration used more frequently and effectively. The car accident lawyers in Provo from London Harker Injury Law are committed to helping clients navigate these new provisions and leverage them for fairer case resolutions.
About London Harker Injury Law:
London Harker Injury Law, a trusted injury law firm in Provo, UT, provides legal guidance and representation to help personal injury victims achieve fair settlements for their injuries. For this reason, the law firm, through its managing partner Kurt London Esq., has provided a detailed breakdown of the amended arbitration law, helping victims understand its benefit to their cases.
Media Contact
Name
London Harker Injury Law
Contact name
Kurt London
Contact phone
(385) 519-0660
Contact address
333 W 2230 N suite 321
City
Provo
State
UT
Zip
84604
Country
United States
Url
https://www.londonharker.com/
