INSURANCE DISPUTE.

Auckland Star, Volume LIX, Issue 236, 5 October 1928, Page 5

INSURANCE DISPUTE.

ARBITRATION CIATTSE. IMPORTANT POINT FOR DECISION. (By Telegraph.—Press Association.) WELLINGTON, this day. The Court of Appeal was engaged today in hearing the case of the United Insurance Company versus C. T. Arthur, of Kilbirnie, Wellington. In November, 1927, defendant proposed to the plaintiff company an insurance on his motor car, and in the same month the company issued him a policy. It contained the condition that si 11 disputes arising under it were to be referred to arbitration. A dispute crose with reference to the amount payable by the company to defendant for an accident alleged to have occurrtd to his '•sir, and !n the course of correspondence the company required defendant to refer fVe amount to be paid to arbitration. Defendant, however, refused, and issued a summons in the Magistrate's Court, claiming £200 from the company. The f thereupon filed a motion in the Supreme Court for an order restraining defendant from proceeding with his action, on the ground that they were entitled to have the amount due to defondant ascertained by arbitration. The question whether the arbitration clause !s effective to exclude completely Ihe Jurisdiction of the Masristrate's Court being one of wide effect, the case was removed on the order of the presiding judge for argument in the Court of Appeal.