Florida Middle District Grants Motion to Compel Appraisal in Hurricane Ian Insurance Dispute, Rejecting Waiver and Ripeness Challenges
By Kelly M. Vogt
In Faith Preparatory School, Inc. v. Westchester Surplus Lines Insurance Co., Case No.: 2:24-cv-1119-JLB-KCD, 2025 U.S. Dist. LEXIS 9726 (MD Fla. Jan. 20, 2025), the dispute arose from damages allegedly caused by Hurricane Ian in September 2022. Faith Preparatory School submitted an insurance claim to Westchester shortly after the storm, and while Westchester issued partial payment, disagreements about the scope of the damages persisted. Over the following year, the parties engaged in negotiations, but reached no resolution. In August 2024, the plaintiff filed a notice of intent to initiate litigation, followed by another notice in October. Ultimately, the plaintiff sued in state court, and Westchester removed the case to federal court. Soon after, the plaintiff demanded an appraisal under the insurance policy, which Westchester rejected, leading to the plaintiff’s motion to compel appraisal and stay proceedings.
Westchester opposed the motion, arguing that the plaintiff had waived its right to appraisal by not invoking it pre-suit, that the demand for appraisal rendered the case unripe and that the plaintiff failed to comply with post-loss conditions in the insurance policy. The court rejected the waiver argument, emphasizing that Florida law allows appraisal demands to be made post-litigation if the policy does not specify otherwise. The court also dismissed Westchester’s ripeness contention as premature, explaining that appraisal is a separate process meant to resolve disputes over the amount of loss and does not preclude litigation over broader contract issues. Regarding the alleged non-compliance with post-loss conditions, the court found no evidence of such failures and allowed the appraisal to proceed.
The court granted the plaintiff’s motion to compel appraisal and ordered a stay of the case, with limited discovery permitted to facilitate the appraisal process. Specifically, each party could conduct a limited number of interrogatories and production requests, as well as a Rule 30(b)(6)deposition within 120 days. The court required the parties to report periodically on the status of the appraisal and provide further updates once an appraisal award was issued.
Kelly M. Vogt