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Cottage_Health_System_LogoA U.S. federal court in Los Angeles has dismissed the Columbia Casualty Co. v. Cottage Health System case, in what is being viewed as win for policyholders.

According to Business Insurance, judge Dean D. Pregerson tossed the case because, “Columbia Casualty should have pursed alternative dispute resolution first, before filing suit against Cottage.”

Pregerson stated, “the insurance policy provides that ‘all disputes and differences between the insured and the insurers which may arise under or in connection with this policy…shall be submitted to the alternative dispute resolution process. The court concludes that the above language controls the timing of suits arising out of the policy and requires that the ADR process take place before a lawsuit is initiated.”


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