Hurricane Irma Declare Is Lastly Going to Appraisal | Property Insurance coverage Protection Regulation Weblog

Hurricane Irma struck over six years in the past. A policyholder who couldn’t receive a good restoration took the choice to litigation by invoking appraisal. Little did the policyholder know that the insurance coverage firm would make a federal case out of the matter. The matter has been stagnant in federal court docket for years, making an attempt to get the matter out of court docket and earlier than an appraisal panel. Final week, the eleventh Circuit Courtroom of Appeals held that events couldn’t problem a choose’s ruling compelling the matter to appraisal.1 

The court docket held: 

Right here, we conclude that the order compelling appraisal on this case will not be a last order appealable below § 1291. In its order, the district court docket explicitly contemplated additional proceedings, explaining that the appraisal wouldn’t get rid of any of the claims within the case nor Empire’s protection defenses. Additional, in Florida, ‘[a]ppraisal exists for a restricted function—the dedication of ‘the quantity of the loss.’ ‘ Residents Prop. Ins. Corp. v. Mango Hill #6 Apartment. Ass’n, Inc., 117 So. 3d 1226, 1230 (Fla. Dist. Ct. App. 2013). ‘[A]n settlement for appraisal extends merely to the decision of the particular problems with precise money worth and ‘quantity of loss,’ ‘ and ‘all points aside from these contractually assigned to the appraisal panel are reserved for dedication in a plenary motion.’

The court docket additional held that even when the court docket thought of it an appraisal below the Federal Arbitration Code, the Order compelling appraisal wouldn’t be an Order topic to attraction. 

The sensible consequence will likely be a rise within the energy of judges to maneuver instances in the direction of appraisal if a celebration calls for the appraisal. It doesn’t imply the award will likely be paid as a result of protection points and different points might be raised after the award, which the trial court docket should rule upon. 

Thought For The Day 

You could have undertaken to cheat me. I gained’t sue you, for the regulation is just too gradual. I’ll damage you.

—Cornelius Vanderbilt

1 Positano Place at Naples I Apartment. Assn. v. Empire Indemnity Ins. Co., No. 22-11059 (11th Cir. Oct. 20, 2023).

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