Quade v. Secura Insurance, 814 N.W.2d 703

A strong windstorm on July 10, 2008 damaged Quade farm buildings insured by Secura under a special farmowners protector policy.
The policy contains an appraisal clause allowing either party to demand an appraisal of the loss if the parties fail to agree on the amount of loss, with a defined appraisal process and a requirement that a policyholder comply before suit.
Secura paid some damages but denied the roofs of three buildings due to maintenance exclusion, asserting the wind damage did not occur within covered terms.
The Quades filed a breach of contract action in Dakota County, arguing the dispute over roof damage fell outside the appraisal clause because it concerned coverage, not the amount of loss.
The district court granted Secura summary judgment, ordered participation in appraisal, and dismissed the complaint with prejudice, noting possible later coverage actions.
The Minnesota Court of Appeals reversed, holding that resolving the claim would require legal questions about contract terms, causation, and liability, and thus the appraisal should not proceed.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Scope of 'amount of loss' in appraisal	Quade argues 'amount of loss' excludes causation; appraisal cannot decide coverage.	Secura argues 'amount of loss' includes causation and extent of loss, fitting appraisal.	Appraisal may determine causation and amount within scope.
Appraisal vs. coverage determinations	Appraisers should not decide coverage; courts must resolve coverage questions.	Appraisal can include causation to quantify loss while keeping coverage questions for courts.	Appraisal proceeding proper; courts retain power to review coverage/ exclusions.
Public policy and procedure for appraisals	Appraisal should not be used where liability/coverage questions predominate.	Minnesota law favors appraisal as a speedier, factual way to determine loss extent.	There is a strong public policy favoring appraisal; proceed with appraisal but review later for liability issues.

Itasca Paper Co. v. Niagara Fire Ins. Co., 175 Minn. 73 (1928) (appraisers determine affected policy coverage and loss amount; liability not final)
Am. Cent. Ins. Co. v. Dist. Court, 125 Minn. 374 (1914) (appraisers handle matters incident to loss; some questions may be legal)
Janney, Semple & Co. v. Goehringer, 52 Minn. 428 (1893) (appraisers may construe contract and determine legal effect)
Kavli v. Eagle Star Ins. Co., 206 Minn. 360 (1939) (public policy supporting appraisal in insurance disputes)
Mork v. Eureka-Sec. Fire & Marine Ins. Co., 230 Minn. 382 (1950) (appraisers can make damages determinations but not final liability)
Quade v. Secura Ins., 792 N.W.2d 478 (Minn.App.2011) (appraisal scope and causation considerations in Minnesota appellate history)