Must an applicant provide proof of payment to prove damages and secure an award?
The distinction between proof of payment and proof of damages is important. Confusion has existed at times from both sides of a dispute, as well as arbitrators. Proof of payment is a must only when a respondent, through its answer, affirmatively challenges the existence of a subrogation claim. If this is not challenged affirmatively through the respondent’s answer, then the presumption is the applicant has made payment to its insured. Otherwise, it would not have a subrogation claim and arbitration would not be filed. Such challenges should be rare and the challenge should be substantiated. A challenge should not simply be raised because the Applicant did not list Proof of Payment in their evidence listing. We don’t want to require the submission of unnecessary documentation. If the applicant’s claim for subrogation is challenged, then as part of its evidence the applicant must prove payment. This could take the form of a copy of the check or draft issued to an insured in payment of th
