Journal of Dispute Resolution Volume 1993 Issue 1 Article 9 1993 Arbitration - Sure, but Only on Our Terms: Escape Clauses in Uninsured Motorist Policies - Schaefer v. Allstate Ins. Co. Steven R. Leppard Follow this and additional works at: https://scholarship.law.missouri.edu/jdr Part of the Dispute Resolution and Arbitration Commons Recommended Citation Steven R. Leppard, Arbitration - Sure, but Only on Our Terms: Escape Clauses in Uninsured Motorist Policies - Schaefer v. Allstate Ins. Co., 1993 J. Disp. Resol. (1993) Available at: https://scholarship.law.missouri.edu/jdr/vol1993/iss1/9 This Note is brought to you for free and open access by the Law Journals at University of Missouri School of Law Scholarship Repository. It has been accepted for inclusion in Journal of Dispute Resolution by an authorized editor of University of Missouri School of Law Scholarship Repository. For more information, please contact
[email protected]. Leppard: Leppard: Arbitration - Sure, but Only on Our Terms: NOTES ARBITRATION? SURE, BUT ONLY ON OUR TERMS: ESCAPE CLAUSES IN UNINSURED MOTORIST POLICIES Schaefer v. Allstate Ins. Co.' I. INTRODUCTION Historically, the insurance industry has widely used arbitration to resolve disputes.2 Insurance companies have increasingly included "escape clauses" in their policies.' These clauses allow an insurance company to ignore an arbitrator's award and have a claim directly heard in a trial court if the award exceeds a pre-determined amount.' The Ohio Supreme Court in Schaefer v. Allstate Insurance Co. addressed this issue and decided that the escape clause was unenforceable due to public policy.' II. FACTS AND HOLDING On November 8, 1985, an automobile occupied by David and Jeanette Schaefer was involved in an accident with a car negligently driven by an uninsured motorist.' At the time of the accident, the Schaefers had an insurance policy with appellant Allstate Insurance Company that provided uninsured motorist coverage with limits at $100,000 per person and $300,000 per 7 occurrence.