Summary of Nationwide Mutual Insurance Co. v. Webb
Nationwide Mutual Insurance Co. v. Webb, 291 Md. 721, 736 (1981) is the consolidation of two cases, the named case and MAIF v. Franz. Both cases concerned the enforceability of consent to sue clauses in uninsured motorist endorsements. In Franz, MAIF's attorney asked the Maryland Court of Appeals of overturn summary judgment granted in favor of Anthony Franz because the Maryland Court of Special Appeals found that the arbitration clause in Franz's insurance policy with MAIF contained an unenforceable mandatory arbitration clause. In Webb, Nationwide Insurance asked the Court of Appeals to affirm the a Court of Special Appeals finding that it was not bound by a disputed involving the injured insured because he had not abided by the consent to sue clause. The court found in favor of the personal injury victim in both cases, affirming judgment in Franz and vacated and remanded Franz, finding that consent to sue clauses were unenforceable because they limited uninsured motorist coverage. The court noted that there was a strong interest in protecting insured drivers, that there was an interest in avoiding repetitive litigation, and that insurers' rights were protected because they had the option of intervening in disputes between insured and uninsured motorists.