137 So. 3d 500
Fla. Dist. Ct. App.2014Background
- Citizens issued a homeowners policy to Adrian and Elena Demetrescu for 12/15/2009–12/15/2010; insureds reported a roof-leak claim on 8/31/2010 after wind and rain,” Citizens denied coverage citing multiple exclusions; Citizens repeatedly refused the insureds’ demands for appraisal; insureds sued for breach of contract and to compel appraisal; Citizens answered denying coverage and raising affirmative defenses; after discovery, insureds moved to compel appraisal and the trial court granted, concluding water leaks were covered and that some defenses were appropriate for appraisal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the court properly ordered appraisal before resolving coverage disputes | Demetrescu seeks appraisal of damages after coverage is acknowledged. | Citizens argues exclusions and coverage defenses must be decided before appraisal. | Appraisal premature; coverage issues must be resolved first. |
| Whether the trial court’s order complied with due-process and proper procedure | Appraisal was sought as a vehicle to obtain a ruling of coverage. | The court can resolve coverage questions before appraisal; exclusions apply to causation. | Order reversed for failing to resolve underlying coverage disputes prior to appraisal. |
Key Cases Cited
- Johnson v. Nationwide Mutual Insurance Co., 828 So.2d 1021 (Fla. 2002) (causation vs. amount-of-loss; coverage issues must be judicially determined)
- Corridori v. Sunshine State Ins. Co., 28 So.3d 129 (Fla. 4th DCA 2010) (coverage disputes must be resolved before appraisal; appraisals assess only loss amount)
- Mango Hill 6 Condo. Ass’n v. Citizens Prop. Ins. Corp., 117 So.3d 1226 (Fla. 3d DCA 2013) (appraisal for loss amount; coverage issues resolved first)
- Mich. Condo. Ass’n v. Citizens Prop. Ins. Corp., 46 So.3d 177 (Fla. 4th DCA 2010) (rejected dual-track allowing appraisal before coverage resolution)
- Castilla v. Fla. Ins. Guar. Ass’n, 18 So.3d 703 (Fla. 4th DCA 2009) (de novo review of appraisal orders; coverage questions outset)