117 So. 3d 1226
Fla. Dist. Ct. App.2013Background
- Hurricane Wilma caused property damage to Mango Hill Condo Ass'n, insured by Citizens Property Insurance Corp.
- Citizens paid $39,900.10 for prior loss and later faced a $846,049.46 supplemental claim via public adjuster.
- Mango Hill demanded appraisal of the supplemental claim; Citizens agreed to appoint an appraiser while reserving policy defenses.
- Appraisal proceeded with Mango Hill’s appraiser and Citizens’ appraiser; an umpire was selected but proceedings expanded beyond initial scope.
- In 2008, the panel issued a proposed award; Citizens objected to irregularities and to the scope of the appraisal.
- Trial court granted Mango Hill’s motion to confirm the appraisal award under the Florida Arbitration Code, which Citizens challenged as inapplicable to appraisal, not arbitration.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Florida Arbitration Code applies to appraisals. | Citizens: arbitration code not applicable to appraisal. | Mango Hill: code applies to appraisal as the mechanism for resolving loss amount. | Arbitration code does not apply to appraisal; not proper to confirm award. |
| Whether the trial court properly entertained the appraisal award instead of addressing Citizens’ defenses. | Citizens preserved defenses to coverage and proof of loss. | Mango Hill contends defenses were waived or subsumed in appraisal. | Appraisal to determine amount of loss only; defenses must be addressed in other proceedings. |
| Whether the appraisal process correctly distinguished amount of loss from coverage issues. | Appraisal should only determine amount, not coverage. | Panel could consider broader aspects within loss determination. | Appraisal determines only the amount of loss, not coverage entitlements. |
Key Cases Cited
- Citizens Prop. Ins. Corp. v. Cuban-Hebrew Congregation of Miami, 5 So.3d 709 (Fla. 3d DCA 2009) (arbitration code not applicable to appraisal)
- Allstate Ins. Co. v. Suarez, 833 So.2d 762 (Fla. 2002) (arbitration code not applicable to appraisal)
- Cotton States Mut. Ins. v. D’Alto, 879 So.2d 67 (Fla. 1st DCA 2004) (distinguishes appraisal from arbitration)
- Nationwide Mut. Fire Ins. Co. v. Schweitzer, 872 So.2d 278 (Fla. 4th DCA 2004) (arbitration vs. appraisal distinction)
- Paradise Plaza Condo. Ass’n Inc. v. Reinsurance Corp. of N.Y., 685 So.2d 937 (Fla. 3d DCA 1996) (appraisal scope limited to loss amount; other issues reserved)
- Tassinari v. Layer, 189 So.2d 651 (Fla. 2d DCA 1966) (arbitration safeguards; differences from appraisal)