{"id":895699,"date":"2019-04-04T11:26:14","date_gmt":"2019-04-04T17:26:14","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=895699"},"modified":"2019-04-05T09:44:23","modified_gmt":"2019-04-05T15:44:23","slug":"appraisal-award-can-one-side-unilaterally-change-it","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/appraisal-award-can-one-side-unilaterally-change-it\/","title":{"rendered":"After an Appraisal Award is Signed, Can One Side Unilaterally Change It?"},"content":{"rendered":"\n<p>J. Ryan Fowler | <a href=\"https:\/\/www.propertyinsurancecoveragelaw.com\/2019\/04\/articles\/insurance\/after-an-appraisal-award-is-signed-can-one-side-unilaterally-change-it\/\">Property Insurance Coverage Law Blog<\/a> | April 2, 2019<\/p>\n\n\n\n<p>With appraisal becoming more popular in first-party insurance cases, I often get asked:\u00a0<em>When is the appraisal completed?<\/em>\u00a0As most answers for a first party insurance case \u2013 it depends on the policy. Recently a Federal District Court in Florida was asked to determine which of two appraisal awards was final and enforceable.<sup>1<\/sup><\/p>\n\n\n\n<p>The insureds filed a claim for hurricane damage with their insurance company. The claim eventually let to a lawsuit in federal court where the parties didn\u2019t contest coverage and agreed to an appraisal under the insurance policy.<\/p>\n\n\n\n<p>Each side appointed an appraiser: Kunzman (for the insurer) and Thomas (for the insureds), and the trial court appointed Leiby to serve as an umpire. The Appraisers and Umpire performed a property inspection in August of 2018. The trial court then outlined the following e-mail exchanges:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>September 5, 2018:<\/p><p>1:54 p.m. \u2013 Umpire Leiby circulated an appraisal award (the \u201cDisputed Award\u201d) in the amount of $121,800.30 that included his electronic signature. The email stated, \u201cSee attached for review and comment. If one or both of you find this agreeable, please sign, scan, and return to me. I will then get out the originals.\u201d<\/p><p>2:27 p.m. \u2013 Appraiser Kunzman expressed his objection to the Disputed Award, asked for a breakdown and itemization of the award amount and a copy of Appraiser Thomas\u2019 estimate.<\/p><p>2:35 p.m. \u2013 Appraiser Thomas emailed Umpire Leiby and Appraiser Kunzman a signed copy of the Disputed Award that Umpire Leiby had circulated at 1:54 p.m., stating, \u201cPlease see the attached award signed by me.\u201d<\/p><p>3:59 p.m. \u2013 Umpire Leiby responded to Appraiser Kunzman\u2019s 2:27 p.m. email, requesting Appraiser Thomas forward him the missing documents and indicating that he would \u201chold off on the final until [Appraiser Kunzman] gets that.\u201d<\/p><p>September 6, 2018:<\/p><p>9:37 a.m. \u2013 Umpire Leiby advised Appraiser Kunzman to provide any input based upon Appraiser Thomas\u2019 estimate within five days. Umpire Leiby then indicated that the \u201cthe award [was] not yet final.\u201d<\/p><p>September 17, 2018:<\/p><p>12:10 p.m. \u2013 Umpire Leiby sent the parties\u2019 appraisers a revised appraisal award (the \u201cRevised Award\u201d) in the amount of $90,704.27.<\/p><p>12:59 p.m. \u2013 Appraiser Kunzman executed the Revised Award and returned it to Umpire Leiby.<\/p><\/blockquote>\n\n\n\n<p>The insurance company paid the insureds $90,704.27, the amount of the Revised Award.<br>The insureds then asked the court to confirm the First Award in the amount of $121,800.30, executed by the Umpire and the insured\u2019s appraiser as the binding appraisal award. The insurance company argued that the insureds\u2019 motion should be denied because the First Award was preliminary or, if the award was final, it was timely modified by the Umpire.<\/p>\n\n\n\n<p>The court looked at the underlying insurance policy which stated:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>The appraisers will state separately the value of the residential property and the amount of loss. If they fail to agree, they will submit their difference to the umpire.&nbsp;<em>A decision agreed to by any two will be binding<\/em>.<\/p><\/blockquote>\n\n\n\n<p>(Emphasis in original.)<\/p>\n\n\n\n<p>The court granted the insureds\u2019 motion, finding that the Umpire did not have the authority to unilaterally change the award after it was signed by two parties. In its order, the court explained that the express terms of the policy stated that a \u201cdecision agreed by any two [appraisers] will be binding.\u201d Here, the court continued, the evidence supported the conclusion that the Disputed Award was final and there was a decision agreed to by any two. The court ruled that once the First Award was forwarded and signed by Appraiser Thomas it \u201cbecame binding by the express and unambiguous terms of the insurance policy.\u201d<\/p>\n\n\n\n<p>The court pointed out that no party had moved to correct or clarify the award and there was no basis for modifying it. The court said that although subsequent emails reflected the Umpire\u2019s statement that the Disputed Award was not intended to be final, those later emails \u201chad no effect\u201d on the Disputed Award\u2019s \u201cearlier binding effect under the express terms of the policy.\u201d<\/p>\n\n\n\n<p>In this case, the disputed (first in time) award was final and enforceable based on the insurance policy language.<br>______________________________<br><sup>1<\/sup>&nbsp;<a href=\"https:\/\/www.propertyinsurancecoveragelaw.com\/files\/2019\/04\/Order-Granting-Motion-to-Confirm-the-September-5-2018-Appraisal-Award-Guzman-T2181332xB2E7A.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Guzman v. American Security Ins. Co.<\/em>, No 18-cv-61195 (S.D. Fla. March 27, 2019)<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>J. Ryan Fowler | Property Insurance Coverage Law Blog | April 2, 2019 With appraisal becoming more popular in first-party insurance cases, I often get asked:\u00a0When is the appraisal completed?\u00a0As most answers for a first party insurance case \u2013 it depends on the policy. Recently a Federal District Court in Florida was asked to determine&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/appraisal-award-can-one-side-unilaterally-change-it\/\">Continue reading <span class=\"screen-reader-text\">After an Appraisal Award is Signed, Can One Side Unilaterally Change It?<\/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":[10235],"tags":[9895,9151,94,351],"class_list":["post-895699","post","type-post","status-publish","format-standard","hentry","category-insurance-appraisal","tag-advise-consult","tag-appraisal-award","tag-florida","tag-insurance-appraisals","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>After an Appraisal Award is Signed, Can One Side Unilaterally Change It? 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