111 F.4th 1182
11th Cir.2024Background
- Westchester issued a property-insurance policy to Biscayne Beach Club Condominium, covering storm damage losses.
- Biscayne Beach was dissatisfied with Westchester’s claim payments and sued; the case was moved to federal court.
- The court ordered the parties to an appraisal under the policy, with each party selecting an impartial appraiser and the two choosing an umpire.
- After Biscayne Beach’s original appraiser was challenged due to a contingency fee, a new appraiser, Pyka, was appointed, whose fee arrangement was unclear.
- Fifteen months after his retention, Pyka disclosed (right before final deliberations) he believed he had a small contingency interest; Westchester did not timely object.
- More than a month after the appraisal award, Westchester moved to vacate, arguing bias, but the district court found waiver and confirmed the award.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Waiver of objection to appraiser's partiality | Westchester didn’t waive; timing OK | Biscayne Beach: Waiver occurred—delay fatal | Waiver applies; Westchester had to object sooner |
| Timeliness of objection to bias | Late disclosure excuses delay | Timely objection was feasible and required | Objection had to be raised upon disclosure |
| Applicability of arbitration waiver law | Arbitration precedent not controlling | Arbitration rules apply to appraisal process | Arbitration waiver principles govern this case |
Key Cases Cited
- Apperston v. Fleet Carrier Corp., 879 F.2d 1344 (6th Cir. 1989) (party knowing of bias must object before award)
- JCI Commc’ns, Inc. v. Int’l Bhd. of Elec. Workers, Loc. 103, 324 F.3d 42 (1st Cir. 2003) (partiality claims must be timely raised)
- Light-Age, Inc. v. Ashcroft-Smith, 922 F.3d 320 (5th Cir. 2019) (party waives conflict objection if not timely raised)
- Técnicas Reunidas de Talara S.A.C. v. SSK Ingeniería y Construcción S.A.C., 40 F.4th 1339 (11th Cir. 2022) (timely objection to arbitrator bias required)
- Univ. Commons-Urbana, Ltd. v. Universal Constructors Inc., 304 F.3d 1331 (11th Cir. 2002) (must contest partiality at time of discovery or waive right)