Blog Archives

Southern District of Texas Holds that Appraisal Award is Inconclusive of Whether a Loss is Covered

Posted on August 29, 2023 by Joshua Tumen

The Southern District of Texas recently held that an appraisal award did not establish liability for a covered loss under the policy. In Hoff v. Meridian Sec. Ins. Co., 2023 WL 5192013 (S.D. Tex. Aug. 11, 2023), Meridian Security Insurance (“Meridian”) insured Flemming Hoff (“Hoff”). After filing suit, Hoff requested an appraisal pursuant to the following policy language: If you [Hoff] and we [Meridian] disagree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will choose a competent and impartial appraiser within 20 days after receiving a written request from the other. The two appraisers will choose an umpire. If they cannot agree upon an umpire within 15 days, you or…

Florida Appeals Court Reverses Appraisal Ordered In Storm Suit

Posted on August 02, 2022 by Tiffany Bustamante O'Quinn, Alycen A. Moss

On July 20, 2022, Florida’s Third District Court of Appeal reversed and remanded a trial court’s decision compelling the parties to proceed with appraisal and staying litigation until that appraisal was completed. Florida’s appellate court held that trial court erred in granting the motion to compel appraisal without first conducting an evidentiary hearing to determine compliance with post loss obligations. About The Authors

Tagged with: appraisal, Bad Faith, claims handling, estimate, Evidentiary Hearing, Florida Bad Faith, Florida property damage, Meaningful Exchange, Motion to Compel Appraisal, Post-Loss Obligations, Scope of Loss Estimate, Setup, Sworn Proof of Loss
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Court’s Opinion Provides Guidance on Protecting a Claims Handling Manual as a Trade Secret

Posted on November 10, 2020 by Karl A. Schulz

In Chavez v. Std. Ins. Co., 2020 U.S. Dist. LEXIS 203610 (N.D. Tex. Oct. 30, 2020), Judge David C. Godbey considered a variation on a common scenario that arises in first party cases. Typically, the insured/plaintiff wants an insurer’s claims handling manual to use against the insurer in proving claims under Texas Insurance Code Chapter 541 and the DTPA. However, as Judge Godbey explained, such manuals are not automatically discoverable. Also, insurers can significantly increase the chances that a court will protect such manuals from unrestricted discovery and use in litigation by providing certain affidavit evidence. The plaintiff in Chavez was receiving long-term disability benefits from Standard Insurance Company (“Standard”). Standard terminated Chavez’s benefits after a medical examination. Litigation ensued. …