In Re Ace American Insurance Company; Endurance American Specialty Insurance Company; Guideone National Insurance Company; Certain Underwriters at Lloyd's, London and Company Market, Subscribing to Policy No. Ptnam2206330; Starstone Specialty Insurance Company; Starr Specialty Lines Insurance Agency, LLC; And Shelf Opco Bermuda Ltd. for and on Behalf of Fidelis Insurance Bermuda Ltd., 25-0461

Insured owned and managed commercial properties insured by multiple property policies, including a Dallas warehouse policy covering the relevant loss period. 1
A ruptured water line under the warehouse slab caused substantial damage, and Insured timely submitted a claim. 2
The policy required appraisal when the parties disagreed on the amount of loss, and Insurers demanded appraisal after paying undisputed amounts and asserting remaining scope-and-cost disputes. 3
Insured refused appraisal and sued for breach of contract, bad faith, Insurance Code violations, and declaratory relief. 4
The trial court and court of appeals denied appraisal relief, and Insurers sought mandamus in the Texas Supreme Court. 5
The Supreme Court held the parties disputed at least in part the amount of loss and that alleged bad faith did not excuse appraisal. 6

Issue	Plaintiff's Argument	Defendant's Argument	Held
Does a coverage dispute bar appraisal? 7	Insured said the dispute was about coverage, causation, and damage existence, not amount of loss.	Insurers said the dispute included valuation of repair, mold, and code-compliance costs.	No; appraisal may proceed because the dispute is at least partly about amount of loss. 8
Was there a genuine disagreement over amount of loss? 9	Insured claimed Insurers never clearly fixed their valuation and their positions shifted.	Insurers said they had paid all owed amounts and consistently valued the claim lower than Insured.	Yes; Insurers adequately disputed the amount of loss. 10
Does alleged bad-faith claim handling excuse appraisal? 11	Insured argued Insurers' delay, underpayment, and coverage defenses were prior material breaches.	Insurers said prior breach is not an appraisal exception and would nullify the clause.	No; alleged bad faith does not create an exception to appraisal. 12
Did the trial court abuse its discretion by denying appraisal? 13	Insured urged the court to deny appraisal until coverage and breach issues were resolved.	Insurers sought mandamus to compel appraisal under the policy.	Yes; mandamus granted and trial court directed to compel appraisal. 14

In re Universal Underwriters of Texas Insurance Co., 345 S.W.3d 404 (Tex. 2011) (appraisal clauses are generally enforceable and mandamus may compel appraisal 15)
State Farm Lloyds v. Johnson, 290 S.W.3d 886 (Tex. 2009) (appraisal determines amount of loss, not policy liability; courts should avoid preemptively blocking appraisal 16)
Mustang Pipeline Co. v. Driver Pipeline Co., 134 S.W.3d 195 (Tex. 2004) (a material breach can excuse further contractual performance 17)
In re Acceptance Indemnity Insurance Co., 562 S.W.3d 645 (Tex. App.—San Antonio 2018) (prior-breach arguments do not defeat an appraisal clause 18)
Michels v. Safeco Insurance Co. of Indiana, 544 F. App'x 535 (5th Cir. 2013) (bad-faith and coverage-handling arguments are incompatible with mandatory appraisal 19)
Gulf Insurance Co. v. Pappas, 73 S.W.2d 145 (Tex. App.—San Antonio 1934, writ ref'd) (appraisers may separate covered loss from preexisting or other damage in valuing loss 20)
Lundstrom v. United Services Automobile Ass'n-CIC, 192 S.W.3d 78 (Tex. App.—Houston [14th Dist.] 2006, pet. denied) (courts may later disregard certain appraisal awards in limited circumstances 21)