This section contains the nature of the case and procedural background.

Elizabeth Smaligo, the decedent, had been gainfully employed as a secretary by Westinghouse Electric Corporation from 1949 until October 1962, when she was admitted to Western Psychiatric Hospital and there diagnosed as schizophrenic. She was committed to Mayview State Hospital and permitted to visit her home on weekends and holidays. During such a home weekend stay, she was struck by a hit-and-run driver on March 27, 1967. Michael and Mary Smaligo, as personal representatives of their daughter's estate, then made a claim against their insurance company under the terms of the Uninsured Motorist Provisions of an automobile liability policy that had been issued to them by that company wherein the company had agreed to pay 'all sums which the insured or his legal representative shall be legally entitled to recover as damages.' D refused to pay the $ 9,750.00 asked by Ps in settlement. D made an offer of $ 7500. If the offer of $ 7500 was not acceptable, D suggested that arbitration papers be prepared. On August 30, 1967, Ps made a demand for arbitration to the American Arbitration Association, and Thomas J. Reinstadtler, Jr., Esquire, was appointed as arbitrator. A hearing was held on December 18, 1967, which resulted in the arbitrator awarding only $243, which was one-third of the cost of a family memorial monument. The arbitrator determined that the funeral bill of $1016.30 was payable under the Medical Payment Clause of the policy and thus not recoverable under the Uninsured Motorist Clause. Ps filed a motion to vacate. Ps' counsel testified at the motion that he had asked the arbitrator for a continuance in order to secure the expert testimony of Dr. Parsons on the question of decedent's future earning ability and capacity, and that the arbitrator stated that such testimony was not necessary. Dr. Parsons was the decedent's attending physician. The arbitrator testified that no formal motion for continuance was made. Counsel who had represented D during the arbitration proceedings testified that the arbitrator did state that the doctor's testimony was unnecessary. Counsel did at the time of the hearing make an offer to present the medical testimony, and the arbitrator viewed such testimony as 'unnecessary.' Ps claimed the arbitrator denied them a fair hearing. The court vacated the award. D appealed.

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