Minnesota Trial Court Confirms Appraisal Award
June 13, 2011
Clausen Miller partner James M. Hoey obtained the confirmation of an appraisal award and dismissal of an insured's state court claims on behalf of a property insurer client. After the insured's grain storage shed was damaged by wind, a dispute arose as to the amount of the insured's lost business income. Pursuant to the policy, the insured demanded an appraisal whereby the claim was reviewed by three appraisers. Under the policy, the value of the lost business income was set if two of the appraisers agreed on an amount.
After two appraisers agreed on the amount of the business income loss which was lower than that claimed by the insured, the insured argued that the appraisal process was not binding and sought to proceed with litigation in a Minnesota state court. In response, CM attorneys filed a motion to confirm the appraisal award and dismiss the insured's complaint. The court agreed that the appraisal provision was binding under the Minnesota's Uniform Arbitration Act and that the insured had not met its burden for vacating the award. The court granted CM attorneys' motion to confirm the award and dismissed the insured's complaint in its entirety.
For any questions on matters involving this case or the appraisal process, please contact Jim (jhoey@clausen.com).
