Creekview of Hugo Association, Inc. v. Owners Insurance Company, 0:19-cv-00487

Background

June 11, 2017 wind/hail damaged the Creekview of Hugo townhome complex; Owners Insurance issued the policy covering replacement cost.
Owners paid an ACV check of $832,684.96 (less $25,000 deductible) but disputed total replacement cost; Creekview’s contractor and Owners’ adjuster produced divergent RC estimates.
Creekview demanded appraisal; an appraisal panel (Oct. 30, 2018) awarded ACV $1,124,515.89 and replacement cost $1,499,354.52, leaving $374,838.63 in recoverable depreciation unpaid.
Parties disputed whether repairs were complete and thus whether depreciation holdback was payable; Owners later made a partial depreciation payment reducing unpaid holdback to $354,564.68.
Creekview moved to confirm the appraisal award in state court; Owners removed to federal court on diversity grounds. Creekview seeks confirmation, interest, costs, and fees.
Court confirmed the appraisal award, ordered payment of the unpaid depreciation, awarded pre- and post-award interest (with computation rules), and denied attorney-fee award without prejudice for lack of a quantified request.

Issues

Issue	Plaintiff's Argument	Defendant's Argument	Held
Does the Minnesota Uniform Arbitration Act govern appraisal award review?	Appraisals are arbitration governed by the Uniform Arbitration Act.	Appraisals are common-law arbitration not covered by the Act.	Act applies; Court follows Minnesota Ct. of Appeals and Eighth Circuit precedent.
Is Owners required to pay the unpaid depreciation holdback after appraisal?	Yes — replacement-cost award is confirmed and Creekview spent at least that amount completing repairs.	No — Owners contends some itemized repairs remain uncompleted so holdback not yet due.	Held payable: aggregated RC award controls; Owners cannot demand itemized proof to delay payment.
When does pre-award interest begin and on what amount?	Interest accrues from June 19, 2017 (claim-opening email); interest should be on full appraisal award including depreciation.	Interest should start at later dates (proof of loss or demand for appraisal); exclude depreciation holdback and exclude earlier ACV payment from interest base.	Interest accrues from June 19, 2017; include depreciation in base per Poehler, but exclude prior ACV payment from the interest calculation.
Are post-award interest and attorney fees recoverable?	Seeks post-award interest on unpaid balance and attorneys’ fees/costs.	Disputes computation period and scope; challenges fee request procedural sufficiency.	Post-award interest owed on unpaid balance at statutory rate; attorneys’ fees denied without prejudice for failure to state amount (may refile).

Key Cases Cited

Poehler v. Cincinnati Ins. Co., 899 N.W.2d 135 (Minn. 2017) (pre-award interest can run despite contractual loss-payment timing and depreciation is included in interest calculation)
Herll v. Auto-Owners Ins. Co., 879 F.3d 293 (8th Cir. 2018) (Minnesota Uniform Arbitration Act applies to appraisal-award review)
David A. Brooks Enterps., Inc. v. First Sys. Agencies, 370 N.W.2d 434 (Minn. Ct. App. 1985) (appraisal awards treated as arbitration awards)
Continental Cas. Co. v. Advance Terrazzo & Tile Co., 462 F.3d 1002 (8th Cir. 2006) (federal court must predict and apply state supreme court law when unresolved)
Hanna v. Plumer, 380 U.S. 460 (1965) (federal procedural rules do not displace substantive state law in diversity cases)