{"id":375372,"date":"2015-01-09T06:53:25","date_gmt":"2015-01-09T13:53:25","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=375372"},"modified":"2015-01-06T14:08:39","modified_gmt":"2015-01-06T21:08:39","slug":"minnesota-holds-comparable-material-quality-requires-wholesale-replacement-undamaged-siding-faded","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/minnesota-holds-comparable-material-quality-requires-wholesale-replacement-undamaged-siding-faded\/","title":{"rendered":"Minnesota holds \u201cComparable Material and Quality\u201d Requires Wholesale Replacement where Undamaged Siding is Faded"},"content":{"rendered":"

Richard C. Bennett | Cozen O’Connor | December 23, 2014<\/p>\n

Matching issues are frequently problematic when storms damage only portions of an insured structure\u2019s exterior and it proves impossible to replace the damaged sections with material that is an exact match for the rest of the building\u2019s roof or siding.\u00a0 Earlier this month, the Minnesota Supreme Court held that the phrase \u201ccomparable material and quality\u201d means material that is suitable for matching; with respect to color, a reasonable match \u2013 not an identical match \u2013 is all that is required.\u00a0 In Cedar Bluff Townhome Condominium Ass\u2019n. v. American Family Mut. Ins. Co., \u2013 N.W.2d \u2013 , 2014 WL 7156914, 2014 Minn. LEXIS 661 (Minn., Dec. 17, 2014), however, the court held that that meant that all of the siding on 20 buildings had to be replaced to avoid a color mismatch even though less than 2% of it had actually sustained hail damage.<\/p>\n

The insured, Cedar Bluff Townhome Condominium Association, owned a residential complex that sustained hail damage in October of 2011.\u00a0 There was at least some siding damage to each building.\u00a0 The siding panels were 15 square feet in size, and between one and ten panels were damaged on each structure.\u00a0 Overall, however, less than 2% of the siding in the complex as a whole had actually been damaged by hail.<\/p>\n

The policy issued by American Family Mutual Insurance Company afforded coverage for \u201cdirect physical loss of or damage to Covered Property,\u201d and there was a Loss Payment clause that obligated the carrier to pay \u201cthe cost of repairing or replacing the lost or damaged property.\u201d\u00a0 The contract of insurance was also written on a replacement cost basis, and it recited that replacement cost was determined based on the cost to replace the lost or damaged property with other property \u201cof comparable material and quality.\u201d\u00a0 The siding was 11 years old, and the color of the panels had faded.\u00a0 The manufacturer had replacement panels that were identical in model name, size, texture, and installation methodology, but they were not available in a color that matched the faded siding.\u00a0 American Family offered to pay $6,800 to replace those panels that had actually been damaged by hail, but Cedar Bluff sought over $361,000 to replace all of the 20 buildings\u2019 siding.<\/p>\n

An appraisal panel sided with the policyholder, but American Family refused to pay, arguing that the award constituted an unauthorized coverage determination.\u00a0 Litigation followed, and the trial court granted summary judgment to the insurer.\u00a0 The state\u2019s intermediate level court then reversed, and the matter proceeded to Minnesota\u2019s highest tribunal.<\/p>\n

On December 17th, the state Supreme Court affirmed in a unanimous opinion written by Justice Alan C. Page.\u00a0 The threshold question was the meaning of \u201ccomparable material and quality.\u201d\u00a0 The insurer conceded that the term connoted \u201csome degree of color match,\u201d admitting that it could not meet its obligations by paying for red siding on an otherwise yellow building, but it argued that the term \u201ccomparable\u201d should be construed to mean similar rather than identical.\u00a0 The court held, however, that:<\/p>\n

the plain meaning of the phrase \u201ccomparable material and quality\u201d is material that is suitable for matching.\u00a0 Thus, we conclude that on the spectrum of resemblance, \u201ccomparable material and quality\u201d requires something less than an identical color match, but a reasonable color match nonetheless.<\/p><\/blockquote>\n

Next, the court examined the appraisal award.\u00a0 It noted that the court of appeals had correctly observed that under Minnesota law the appraisal panel had the authority to consider the meaning of phrases such as \u201ccomparable material and quality\u201d when determining the amount of loss.\u00a0 It then found that the appraisers had in fact determined that replacement of all of the siding was a reasonable color match, based on: (1) the award\u2019s use of the words \u201creasonable match\u201d throughout; and (2) the fact that neither the words \u201cidentical color match\u201d nor \u201cexact color match\u201d appeared anywhere in the panel\u2019s award.<\/p>\n

Finally, Justice Page held that there had been \u201cdirect physical loss of or damage to\u201d all of the siding.\u00a0 The insurer argued that the undamaged panels had not sustained physical loss or damage, but the court observed that:<\/p>\n

[b]ecause of the color mismatch resulting from the inability to replace the hail-damaged siding panels with siding of \u201ccomparable material and quality,\u201d the covered property \u2013 Cedar Bluff\u2019s \u201cbuildings\u201d \u2013 has sustained a \u201cdirect, demonstrable, and physical alteration.\u201d\u00a0 Thus, we conclude that the covered property sustained a covered loss.<\/p>\n

Notably, the decision did not address the meaning of the term \u201clike kind and quality.\u201d\u00a0 Under the Loss Payment provision, the insurer had the option to \u201c[r]epair, rebuild or replace the property with other property of like kind and quality\u201d instead of paying \u201cthe cost of repairing or replacing the lost or damaged property.\u201d\u00a0 American Family chose the latter payment option.\u00a0 The decision therefore noted that the court was not expressing any opinion as to the meaning of \u201clike kind and quality\u201d nor determining whether that phrase was interchangeable with \u201ccomparable material and quality.\u201d<\/p>\n

via Minnesota holds \u201ccomparable material and quality\u201d requires wholesale replacement where undamaged siding is faded – Lexology<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Richard C. Bennett | Cozen O’Connor | December 23, 2014 Matching issues are frequently problematic when storms damage only portions of an insured structure\u2019s exterior and it proves impossible to replace the damaged sections with material that is an exact match for the rest of the building\u2019s roof or siding.\u00a0 Earlier this month, the Minnesota… Continue reading Minnesota holds \u201cComparable Material and Quality\u201d Requires Wholesale Replacement where Undamaged Siding is Faded<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[3],"tags":[6483,191,3],"class_list":["post-375372","post","type-post","status-publish","format-standard","hentry","category-insurance-claims","tag-comparable-material-and-quality","tag-hail-damage","tag-insurance-claims","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nMinnesota holds \u201cComparable Material and Quality\u201d Requires Wholesale Replacement where Undamaged Siding is Faded - Advise & Consult, Inc.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/minnesota-holds-comparable-material-quality-requires-wholesale-replacement-undamaged-siding-faded\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Minnesota holds \u201cComparable Material and Quality\u201d Requires Wholesale Replacement where Undamaged Siding is Faded - Advise & Consult, Inc.\" \/>\n<meta property=\"og:description\" content=\"Richard C. Bennett | Cozen O’Connor | December 23, 2014 Matching issues are frequently problematic when storms damage only portions of an insured structure\u2019s exterior and it proves impossible to replace the damaged sections with material that is an exact match for the rest of the building\u2019s roof or siding.\u00a0 Earlier this month, the Minnesota… Continue reading Minnesota holds \u201cComparable Material and Quality\u201d Requires Wholesale Replacement where Undamaged Siding is Faded\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.myconstructionexpert.com\/blog\/minnesota-holds-comparable-material-quality-requires-wholesale-replacement-undamaged-siding-faded\/\" \/>\n<meta property=\"og:site_name\" content=\"Advise & Consult, Inc.\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/\" \/>\n<meta property=\"article:published_time\" content=\"2015-01-09T13:53:25+00:00\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@adviseconsult\" \/>\n<meta name=\"twitter:site\" content=\"@adviseconsult\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/minnesota-holds-comparable-material-quality-requires-wholesale-replacement-undamaged-siding-faded\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/minnesota-holds-comparable-material-quality-requires-wholesale-replacement-undamaged-siding-faded\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7\"},\"headline\":\"Minnesota holds \u201cComparable Material and Quality\u201d Requires Wholesale Replacement where Undamaged Siding is Faded\",\"datePublished\":\"2015-01-09T13:53:25+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/minnesota-holds-comparable-material-quality-requires-wholesale-replacement-undamaged-siding-faded\/\"},\"wordCount\":850,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\"},\"keywords\":[\"Comparable Material and Quality\",\"Hail Damage\",\"Insurance Claims\"],\"articleSection\":[\"Insurance Claims\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.myconstructionexpert.com\/blog\/minnesota-holds-comparable-material-quality-requires-wholesale-replacement-undamaged-siding-faded\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/minnesota-holds-comparable-material-quality-requires-wholesale-replacement-undamaged-siding-faded\/\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/minnesota-holds-comparable-material-quality-requires-wholesale-replacement-undamaged-siding-faded\/\",\"name\":\"Minnesota holds \u201cComparable Material and Quality\u201d Requires Wholesale Replacement where Undamaged Siding is Faded - Advise & Consult, Inc.\",\"isPartOf\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#website\"},\"datePublished\":\"2015-01-09T13:53:25+00:00\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.myconstructionexpert.com\/blog\/minnesota-holds-comparable-material-quality-requires-wholesale-replacement-undamaged-siding-faded\/\"]}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#website\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/\",\"name\":\"Advise & Consult, Inc.\",\"description\":\"Construction Expert Witnesses\",\"publisher\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.myconstructionexpert.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\",\"name\":\"Advise & Consult\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png\",\"contentUrl\":\"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png\",\"width\":162,\"height\":75,\"caption\":\"Advise & Consult\"},\"image\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/\",\"https:\/\/x.com\/adviseconsult\",\"https:\/\/www.linkedin.com\/company-beta\/204526\/\",\"https:\/\/www.youtube.com\/user\/MrConstructionExpert\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg\",\"caption\":\"admin\"},\"sameAs\":[\"http:\/\/www.expertwitnessinconstruction.com\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Minnesota holds \u201cComparable Material and Quality\u201d Requires Wholesale Replacement where Undamaged Siding is Faded - Advise & Consult, Inc.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.myconstructionexpert.com\/blog\/minnesota-holds-comparable-material-quality-requires-wholesale-replacement-undamaged-siding-faded\/","og_locale":"en_US","og_type":"article","og_title":"Minnesota holds \u201cComparable Material and Quality\u201d Requires Wholesale Replacement where Undamaged Siding is Faded - Advise & Consult, Inc.","og_description":"Richard C. Bennett | Cozen O’Connor | December 23, 2014 Matching issues are frequently problematic when storms damage only portions of an insured structure\u2019s exterior and it proves impossible to replace the damaged sections with material that is an exact match for the rest of the building\u2019s roof or siding.\u00a0 Earlier this month, the Minnesota… Continue reading Minnesota holds \u201cComparable Material and Quality\u201d Requires Wholesale Replacement where Undamaged Siding is Faded","og_url":"https:\/\/www.myconstructionexpert.com\/blog\/minnesota-holds-comparable-material-quality-requires-wholesale-replacement-undamaged-siding-faded\/","og_site_name":"Advise & Consult, Inc.","article_publisher":"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/","article_published_time":"2015-01-09T13:53:25+00:00","author":"admin","twitter_card":"summary_large_image","twitter_creator":"@adviseconsult","twitter_site":"@adviseconsult","twitter_misc":{"Written by":"admin","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.myconstructionexpert.com\/blog\/minnesota-holds-comparable-material-quality-requires-wholesale-replacement-undamaged-siding-faded\/#article","isPartOf":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/minnesota-holds-comparable-material-quality-requires-wholesale-replacement-undamaged-siding-faded\/"},"author":{"name":"admin","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7"},"headline":"Minnesota holds \u201cComparable Material and Quality\u201d Requires Wholesale Replacement where Undamaged Siding is Faded","datePublished":"2015-01-09T13:53:25+00:00","mainEntityOfPage":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/minnesota-holds-comparable-material-quality-requires-wholesale-replacement-undamaged-siding-faded\/"},"wordCount":850,"commentCount":0,"publisher":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization"},"keywords":["Comparable Material and Quality","Hail Damage","Insurance Claims"],"articleSection":["Insurance Claims"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.myconstructionexpert.com\/blog\/minnesota-holds-comparable-material-quality-requires-wholesale-replacement-undamaged-siding-faded\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.myconstructionexpert.com\/blog\/minnesota-holds-comparable-material-quality-requires-wholesale-replacement-undamaged-siding-faded\/","url":"https:\/\/www.myconstructionexpert.com\/blog\/minnesota-holds-comparable-material-quality-requires-wholesale-replacement-undamaged-siding-faded\/","name":"Minnesota holds \u201cComparable Material and Quality\u201d Requires Wholesale Replacement where Undamaged Siding is Faded - Advise & Consult, Inc.","isPartOf":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#website"},"datePublished":"2015-01-09T13:53:25+00:00","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.myconstructionexpert.com\/blog\/minnesota-holds-comparable-material-quality-requires-wholesale-replacement-undamaged-siding-faded\/"]}]},{"@type":"WebSite","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#website","url":"https:\/\/www.myconstructionexpert.com\/blog\/","name":"Advise & Consult, Inc.","description":"Construction Expert Witnesses","publisher":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.myconstructionexpert.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization","name":"Advise & Consult","url":"https:\/\/www.myconstructionexpert.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png","contentUrl":"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png","width":162,"height":75,"caption":"Advise & Consult"},"image":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/","https:\/\/x.com\/adviseconsult","https:\/\/www.linkedin.com\/company-beta\/204526\/","https:\/\/www.youtube.com\/user\/MrConstructionExpert"]},{"@type":"Person","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg","caption":"admin"},"sameAs":["http:\/\/www.expertwitnessinconstruction.com"]}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p2ztG6-1zEo","jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/375372","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/comments?post=375372"}],"version-history":[{"count":0,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/375372\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/media?parent=375372"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/categories?post=375372"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/tags?post=375372"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}