John J. Tollefsen Arbitration Law Blog on Lawyers.com

Bonds v. Farmers Ins. Co. of Oregon, --- P.3d ---- (Or.App. Apr 01, 2009)

The trial court held that Farmers Insurance Company, “formally instituted arbitration proceedings,” tolling the statute of limitations 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 Court of Appeals reversed finding that neither party initiated arbitration in the manner prescribed by the arbitration statute, and the parties did not agree to some other procedure.