News & Analysis as of

Breach of Contract Appraisal Insurance Industry

Zelle  LLP

Itemized Appraisal Ordered Over Delay and Coverage Dispute Objections: A Shift in the Appraisal Enforcement Paradigm?

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In a recent decision, Gray v. Philadelphia Contributionship, 748 F. Supp. 3d 367 (D. Md. 2024), U.S. District Judge James K. Bredar granted a policyholders’ motion to compel appraisal and stayed litigation in a diversity...more

Cozen O'Connor

Iowa Supreme Court Rejects Restaurant’s Allegations of Bad Faith and Breach of Contract After Appraisal

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The Iowa Supreme Court recently reversed the appellate court’s denial of an insurer’s motion for a directed verdict, finding that United Fire did not breach the insurance policy and did not commit bad faith during a property...more

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Menchaca Continues to Preclude Post-Appraisal Liability

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In USAA Texas Lloyds Company v. Menchaca, the Texas Supreme Court provided five distinct rules regarding the relationship between claims for an insurance policy breach and Texas Insurance Code violations. Shortly after the...more

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The Graber Opinion is Confirmed as an Outlier in Matters Involving Texas Appraisals

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With the continued onslaught of hail and other weather related litigation in Texas, insurance carriers often elect to resolve claims through the appraisal process outlined in the policy. Insurance carriers historically...more

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How Appraisal Protects Against Texas Insurance Code Abuse

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Insurance practice in Texas has become somewhat rote. Typically, a petition is filed against both an insurance company (that is often not based or incorporated in Texas) and a local adjuster. In addition to a breach of...more

Cozen O'Connor

Don’t Mess with the Texas Prompt Payment of Claims Act: One Court’s Appraisal Result

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Virtually all property insurance policies contain an appraisal clause, which outlines the appraisal procedure in broad terms. Those broad terms sometimes do not provide much guidance about the process, or about the effect...more

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