Klass v. Liberty Mutual Insurance Co.

In its brief, UP argues for the proper and efficient application of the appraisal process. Technical disputes over dollar values of property damage and construction and repair costs are well suited to being resolved in insurance appraisals. The appraisal process offers the advantage of a speedy and efficient determination of the value of a loss.  The appraisal process can fulfill the insurance policy objective of prompt payment by providing an alternative to costly and time-consuming litigation. In this case, and those generally involving appraisal, courts should endeavor to mandate proceedings that will truly value losses expeditiously and fairly, and defeat efforts by insurers to impose conditions and limitations that render an appraisal a waste of time and money.

Here, UP seeks to be a true friend of the court by bringing the Court’s attention to issues that address the general public interest and that may have otherwise escaped the Court’s consideration. UP argues that:

1. The Business of Insurance Affects the Public Trust, and
2. Public Policy Favors Appraisal

UP insists that the Court compel appraisal or risk defeating its purpose to avoid potentially costly and time-consuming litigation at the expense of the policyholder.