2026-Ohio-2764
Ohio2026Background
- One Church’s property insurance policy with Brotherhood contained a binding appraisal procedure for disputes over the amount of loss. 1
- After a February 2019 windstorm damaged church buildings, the parties invoked appraisal and their appraisers agreed to a $313,271.98 loss amount. 2
- Brotherhood paid the appraisal amount less the deductible, and One Church cashed the check. 3
- One Church later sued for declaratory judgment, breach of contract, and bad faith, alleging additional hidden damages discovered after appraisal. 4
- The trial court entered judgment on the pleadings for Brotherhood, but the Tenth District reversed. 5
- The Supreme Court of Ohio reversed, holding that One Church failed to plead mistake with the particularity required to invalidate the binding appraisal. 6
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether One Church’s post-appraisal suit challenged a binding appraisal award 7 | One Church sought payment for newly discovered additional damages, not to undo the appraisal. | Brotherhood argued One Church was trying to reopen and augment a binding appraisal. | The complaint challenged the appraisal, so fraud or mistake had to be pleaded. 8 |
| Whether One Church pleaded mistake with Civ.R. 9(B) particularity 9 | One Church alleged additional hidden damages showed mistake in the appraisal. | Brotherhood argued the complaint lacked specific facts showing a manifest mistake. | No; the complaint did not allege facts constituting mistake with particularity. 10 |
| Whether judgment on the pleadings was properly granted 11 | One Church sufficiently stated breach of contract and declaratory relief claims. | Brotherhood argued the appraisal foreclosed further recovery. | Yes; the complaint failed to state a claim, so dismissal was reinstated. 12 |
Key Cases Cited
- Baltimore & Ohio R.R. Co. v. Stankard, 56 Ohio St. 224 (Ohio 1897) (appraisal awards are ordinarily binding and conclusive 13)
- Pfleger v. Renner, 13 Ohio App. 96 (1st Dist. 1920) (appraisal may be disturbed only for corruption or gross mistake, not mere error of judgment 14)
- Burchell v. Marsh, 58 U.S. 344 (U.S. 1854) (a binding award is not set aside for ordinary judgment error 15)
- Haddon View Investment Co. v. Coopers & Lybrand, 70 Ohio St. 2d 154 (Ohio 1982) (Civ.R. 9(B) particularity requires notice of specific claims 16)
- Lakewood Manufacturing Co. v. Home Insurance Co. of New York, 422 F.2d 796 (6th Cir. 1970) (manifest mistake exists only if the appraiser would have corrected it if told 17)