Court requires legit cost dispute first
Florida’s Third District Court of Appeal has ruled in another case regarding untimely claims that you can’t put the cart before the horse – in this case, a court can’t compel appraisal without first holding an evidentiary hearing to determine if the policyholder complied with their post loss obligations to their insurance company.
The case involved a couple who notified their homeowners insurance company of roof damage and resulting interior water damage from a June 2019 storm. The company promptly inspected, determined the roof damage was wear and tear instead, but issued a check for the interior damage. The insurance company later argued that despite repeated requests, it never received a scope of loss estimate from the couple’s public adjuster for additional monies it admitted may still be owned for the interior damage based on its independent engineering report. After it eventually closed the claim, the couple sued, alleging breach of contract, bad faith, and fraudulent inducement and moved to compel appraisal, which the trial court granted. The insurance company appealed the decision, essentially arguing the policyholders didn’t deserve another bite at the apple.
The 3rd DCA, in Auto Club Insurance Company of Florida v. Nolan Santee and Maria Santee, ruled the trial court erred in granting the appraisal and remanded the case. The Court wrote that “before compelling appraisal, the trial court must determine that post loss obligations have been met and that an arbitrable issue exists regarding the amount of the loss.” The Court also granted Auto Club’s motion for attorney fees and costs. You can read more about this case in the Cozen O’Connor blog.
LMA Newsletter of 8-8-22
