UP submitted a letter urging the California Supreme Court to grant review on a very important issue for homeowners: whether an insurance company whose policy contains an appraisal provision as a pre-requisite to a lawsuit, can litigate a case for two years and then on the eve of trial ask the court to dismiss the case because the appraisal never occurred. This is a draconian result and is contrary to well-establish California law that a defendant may not invoke a pre-suit arbitration provision once it has submitted to the court’s jurisdiction. Otherwise, an insurance company can “test the waters” and then escape the lawsuit on a mere technicality. In the property insurance context this is especially important because appraisal can only address the actual cash value of items – it cannot adjudicate issues of bad faith and claims handling. In this case, the bad faith suit could not have been resolved through the appraisal process anyway so insisting on appraisal (thus dismissing the policyholders bad faith claim with prejudice) in this context is an absurd result.
In its amicus curiae brief, UP supports policyholders’ rights to recover preaward and post-award interest on their insurance appraisal awards in line with the legislative intent of Minn. Stat. § 549.09 and the Minnesota Supreme Court’s decision in Poehler v. Cincinnati Insurance Company, 899 N.W.2d…
- D&O Policy Language
In its brief, UP weighs in on whether this appeal generally concerns the Appellant’s entitlement to coverage under a directors and officers policy of insurance for consolidated shareholder appraisal actions resulting in a judgment against the Appellant, as well as litigation costs and fees. UP identifies important issues of…
- Scope of Appraisal
In its brief, UP discusses the purpose of appraisal and why the District Court erred in granting summary judgment to the insurer. UP suggests that the Court erred in holding that Treasure Cay’s demand for appraisal was premature, and that the purpose of appraisal is to…
In its brief, UP tackles the issue of appraisal provisions that are placed in policies to resolve disputes over the amount of loss. Traditionally, nothing in the policy dictates that issues of coverage must be determined prior to appraisal. However, American Capital’s policy, and most modern…