91 So. 3d 397
La. Ct. App.2012Background
- Dufrene sues Underwriters for windstorm losses to a six-unit building damaged in Hurricane Katrina.
- Dufrene invoked the appraisal provision; appraisers were Lewis O’Leary (Dufrene) and Mark Sturgess (Underwriters) with umpire Robert Foley.
- Trial court appointed Foley as umpire after the appraisers disagreed.
- Trial court set procedures to govern communications and submissions to the umpire to prevent overwhelm.
- Umpire and appraisers ultimately concluded no further funds were due; Foley’s report aligned with Sturgess’ findings.
- Judgments granted Underwriters’ motion to confirm the umpire’s award and denied Dufrene’s motion to vacate; Dufrene appeals.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the court improperly interfered with the appraisal process. | Dufrene argues court ‘micro-managed’ the process. | Underwriters contend court properly regulated procedure to ensure impartiality. | No error; court’s guidelines were proper. |
| Whether Sturgess should have been disqualified as appraiser. | Sturgess biased due to prior 2005 damage photographs. | Sturgess qualified and impartial. | No error in not disqualifying Sturgess. |
| Whether the umpire’s award was properly confirmed. | Umpire relied improperly on receipts; failed independent valuation. | Award based on policy terms; two appraisers’ agreement binds. | Yes; award properly confirmed. |
Key Cases Cited
- St. Charles Parish Hospital Service Dist. No. 1 v. United Fire & Casualty Co., 681 F.Supp.2d 748 (E.D. La. 2010) (court retains authority over appraisal process; governs conduct)
- Louisiana Ins. Guar. Ass’n v. Interstate Fire & Cas. Co., 630 So.2d 759 (La. 1994) (contract interpretation guides appraisal disputes)
- Branch v. Springfield, Fire & Marine Ins. Co., 4 So.2d 806 (La. 1941) (binding effect of two-appraiser, one-umpire framework)
- Cadwallader v. Allstate Ins. Co., 848 So.2d 577 (La. 2003) (interpretation of insurance contracts; common intent)
- Smith v. Matthews, 611 So.2d 1377 (La. 1993) (contract interpretation rules; ordinary meaning)
- Huggins v. Gerry Lane Enterprises, Inc., 957 So.2d 127 (La. 2007) (interpretation of insurance contracts; common intent)