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Attacking and Defending Insurance Appraisal Awards: Litigating Impartiality, Undue Influence, and Other Key Issues

Recording of a 90-minute CLE video webinar with Q&A

This program is included with the Strafford CLE Pass. Click for more information.
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Conducted on Thursday, November 21, 2024

Recorded event now available

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This CLE webinar will discuss why the appraisal remedy in insurance policies may not be the straightforward solution it appears to be on paper, the grounds for vacating appraisal awards, and why it may simply be a prelude to litigation over appraiser impartiality.

Description

The linchpin of the appraisal remedy is trust. The parties agree in the policy to accept the final award because on paper the appraisers and umpires who decide the awards are supposed to be competent, objective, independent, and disinterested professionals who owe nothing to either party and because they follow reliable processes.

Apparently, fewer and fewer policyholders and insurers are satisfied with or willing to trust this process. Lawsuits seeking to vacate awards are increasing even as the remedy is being invoked more often in ordinary cases as well as in complex, multi-cause events involving covered and uncovered claims where causation, loss amount, and the extent of the loss are all intertwined.

Courts will set aside awards, as a rule, only if they were made without authority; resulted from fraud, mistake, or accident; or were not rendered in compliance with the policy. Awards will be set aside on the basis of undue influence, which can take many forms. One area of concern is the increasing prevalence of insurer guidelines and restrictions on appraisers and umpires that allegedly impair their independence.

Listen as this experienced panel offers insight into why what was once a dependable dispute-resolution mechanism is possibly a trap for the unwary and offers guidance for recognizing undue influence or missteps so that counsel can intelligently challenge or defend the final award.

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Outline

  1. Overview of appraisal remedy
    1. Demanding an appraisal: how and when (and when not)
    2. Choosing an appraiser and documenting the agreement to appraise
    3. Selecting an umpire
    4. Defining the scope of the appraisal
    5. Reporting the appraisal
  2. Enforcing or challenging the appraisal
    1. Timing
    2. Grounds for vacating award
      1. Without authority
      2. Fraud, mistake, accident
      3. Not rendered in compliance with the policy
      4. Proving undue influence, bias, prejudice, interference with process
    3. Correcting errors
  3. Binding effect of appraisal
  4. Remedies if appraisal is vacated

Benefits

The panel will review these and other important issues:

  • What kind of disclosures can or should be required from appraisers or umpires to fully disclose possible conflicts or impartiality?
  • How are mixed questions of causation, loss amount, and the extent of the loss decided?
  • Does payment of the appraisal amount extinguish extra-contractual claims?
  • Does coverage have to be resolved before an appraisal?

Faculty

Circelli, Vincent
Vincent Circelli

Partner
Dugas & Circelli

Mr. Circelli represents plaintiffs and defendants in all aspects of litigation and trial practice. He has obtained...  |  Read More

Kantro, Illon
Illon R. Kantro

Partner
Berk, Merchant & Sims

Mr. Kantro is a partner at Berk, Merchant & Sims. He received his Bachelor of Science from The American University,...  |  Read More

Lozier, Gina
Gina Clausen Lozier

Partner
Clausen Choquette Law

Ms. Clausen Lozier is a founding partner of Clausen Choquette PLLC and focuses her practice on first and third-party...  |  Read More

Whedbee, Justin
Justin Whedbee, AIC, ACP, CCP

Chief Executive Officer, Co-Founder
MAS Solutions

Mr. Whedbee is an insurance professional with more than twenty-five years of experience in all lines of claims. He is...  |  Read More

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