Utah recently updated Utah Code § 31A-22-321, the law that governs arbitration in third-party motor-vehicle bodily-injury claims. This statute creates a unique pathway for injured people to resolve car-accident injury claims through a faster, more streamlined arbitration process—with the option to return to court afterward if certain conditions are met.
Below is a clear, SEO-optimized breakdown of how Utah’s amended 321 arbitration statute works in 2025, what it means for accident victims, and the strategic considerations involved in choosing arbitration.
If you’re considering 321 arbitration, speak with an experienced Utah personal injury attorney—not someone who dabbles in injury work. The election can dramatically impact the value and trajectory of your claim.
1. What Is the 321 Arbitration Election?
Under Utah Code § 31A-22-321, an injured person may elect binding arbitration on their bodily-injury claim if:
- A lawsuit has already been filed, and
- The plaintiff files a Notice of Submission to Arbitration within 14 days after the defendant files their answer.
Once elected, the injury claim leaves the courtroom and moves into arbitration. Arbitration is typically faster, less formal, and often held remotely or in a law office rather than a courthouse.
2. 321 Arbitration Damages Are Capped (No Punitive Damages Allowed)
A major strategic consideration is that 321 arbitration limits the total possible damages.
Arbitration Award Caps
Your total award is capped at the lesser of:
- $75,000, or
- The at-fault driver’s per-person liability insurance limits
Additional rules:
- Property damage is only included if both sides agree in writing.
- PIP reimbursement disputes are handled insurer-to-insurer.
- You cannot obtain a judgment against the defendant’s personal assets.
- Punitive damages are prohibited, even if the claim goes to a later trial de novo.
Because punitive damages require jury evaluation, arbitration is generally unsuitable for punitive-damages-type cases anyway.
3. No Personal Judgments Against the At-Fault Driver
By electing 321 arbitration, the plaintiff waives the right to collect from the at-fault driver’s personal assets.
Recovery is strictly limited to:
- Available BI insurance coverage, plus
- Up to $15,000 extra, and
- Any recoverable costs on appeal (Utah R. Civ. P. 54 costs, filing fees, deposition costs, etc.)
This protects individual defendants but can restrict recovery for seriously injured plaintiffs.
4. Choosing the Arbitrator: One or Three?
In most Utah car-accident arbitrations, a single arbitrator is used.
Unless the parties agree otherwise:
-
Both sides have 90 days from the answer to jointly choose an arbitrator.
-
If they cannot agree, a three-arbitrator panel is used:
- Each side picks one arbitrator.
- Those two select the third.
-
Costs are split evenly (each party pays for their own arbitrator when three are used).
Because three-panel arbitrations are significantly more expensive, most claimants prefer a single arbitrator. If you want a three-panel evaluation for a potentially higher award, a jury trial may be the better venue.
5. How Discovery Works Under 321 Arbitration
321 arbitration uses the Utah Rules of Civil Procedure and Evidence, but applies them in a more flexible, cost-efficient manner.
Discovery timeline
- All discovery must be completed within 150 days, unless extended by stipulation or order.
- Parties frequently agree to modest extensions, but the timeline is still much shorter than typical litigation.
6. The Arbitration Award & Your Right to a Trial de Novo
After the arbitrator issues a written decision, it becomes final unless a party requests a trial de novo.
How to request a trial de novo
A party must:
- File a notice of trial de novo within 20 days of the arbitration award, and
- Serve the other side.
If no one appeals, the arbitration award can be entered as a judgment.
7. What Happens After a Trial de Novo?
If a trial de novo is requested, the case returns to the normal litigation track.
Additional Discovery
The statute provides an additional 120 days of discovery after the appeal notice.
Right to Jury Trial
Either party may demand a jury trial at the time the de novo request is filed.
This means arbitration does not waive your right to a jury, which is unique among arbitration systems.
8. Damage Caps After a Trial de Novo
This is one of the most misunderstood parts of the statute.
If the Defendant Requests the Trial de Novo
Damages at trial are capped at:
- Policy limits + $15,000, plus costs.
If the Plaintiff Requests the Trial de Novo
Damages at trial are capped at the lesser of:
- $75,000, or
- The BI policy limits
Even after appealing out of arbitration, damages remain capped. You do not regain access to the defendant’s personal assets.
9. Cost-Shifting Penalties After a Trial de Novo
The statute includes strong penalties for parties who gamble on a trial de novo but fail to substantially improve their result.
If the Plaintiff Requests De Novo
The plaintiff must beat the arbitration award by:
- At least $5,000, and
- At least 30%
If not, the plaintiff must pay all of the defendant’s costs, including:
- Expert fees
- Deposition costs
- Arbitration costs
- Pre- and post-judgment interest
If the Defendant Requests De Novo
The defendant must obtain a verdict at least 30% lower than the arbitration award.
If not, the defendant pays the plaintiff’s costs.
These penalties create strong incentives for both sides to think carefully before appealing an arbitration decision.
10. Rescinding the 321 Arbitration Election
A plaintiff may rescind their arbitration election if:
- Done within 90 days of electing arbitration, and
- At least 30 days before the arbitration hearing
This rescission is one-time only.
Once rescinded, the plaintiff cannot elect arbitration again in the same case.
Conclusion: Is Utah 321 Arbitration Right for Every Injury Case?
Not always.
Utah’s 321 arbitration system offers:
- Faster resolution
- Lower costs
- Streamlined procedure
- Protection from runaway expenses
But it also imposes:
- Strict damage caps
- No punitive damages
- No access to personal assets
- Harsh cost-shifting penalties after a trial de novo
As a Utah personal injury attorney who regularly handles motor-vehicle injury claims, I evaluate § 321 arbitration on a case-by-case basis. Some cases benefit from the speed and efficiency of arbitration. Others are far better suited for a full jury trial.
If you’ve been injured in a Utah car accident and want to know whether arbitration is the right move, reach out anytime. I’m happy to walk you through your options and protect your rights every step of the way.
Learn More About Utah Accident Lawyer Jake Gunter
For additional insights on Utah personal injury law and to get to know Jake Gunter better, check out these helpful videos:
- Meet Jake Gunter – Learn more about Jake Gunter’s background, experience, and dedication to helping clients throughout Utah.
- How to Choose a Utah Personal Injury Attorney – This video offers guidance on selecting the right personal injury attorney to ensure you receive effective representation.
- What Jake Gunter Does and Who He Represents – Discover the types of cases Jake Gunter handles and how he advocates for the rights of injured individuals statewide.
These resources will provide you with valuable information as you consider your legal options. For any questions or to schedule a free consultation, feel free to reach out to us directly.
Call (801) 373-6345