Insurer Ordered to Participate in Appraisal

    The court found that the insured’s request for an appraisal was timely and ordered the insurer to participate. Cloisters of Naples, Inc v. Landmark Am. Ins. Co., 2023 U.S. Dist. LEXIS 6884 (M.D. Flag. Jan. 13, 2023).

    A hurricane damaged Cloisters, a condominium. Cloisters made a claim under its commercial insurance policy with Landmark. Landmark acknowledged coverage but failed to pay what Cloisters thought was needed. Cloisters sued.

    The policy had a standard appraisal provision, but another clause had a suit litigation provision requiring a request for appraisal within two years after physical loss to the property. The dispute was whether Florida law, allowing  appraisal clauses to be valid for 130 years, or Georgia law, which had no such extension on requesting an appraisal.  Landmark contended the contract was formed in Georgia, so its law should apply. Florida followed the lure of lex loci, which provided that the law of the jurisdiction where the contract was executed governed.

    The court determined that Florida had the most significant relationship to the transaction. The insured property was in Florida, the insured was a Florida citizen, and the hurricane damage occurred in Florida. Under Florida law, Landmark was obligated to participate in the appraisal. Plaintiffs’ Motion to Compel Appraisal was granted.