In August 2005, Trustgard Insurance Co. and G.A. Crandall & Co. came to an agreement that allowed Crandall to sell certain types of Trustgard insurance. The terms of the agreement specified that as a condition precedent to any lawsuit, the dispute must be first submitted to arbitration.
The parties’ agreement specified that the demand for arbitration must be made within one year of the dispute and that failure to make the demand on time, in writing and in a specified time period, would result in a waiver of any claim centered on the dispute.
In 2008, Richard Lombardi insured his 1995 Dodge with Trustgard automobile insurance purchased through Crandall. Lombardi’s policy had a limit of $100,000 in coverage for each accident.