Friday, November 7, 2014

When is a Showing of Prejudice Required to Determine Waiver of Appraisal

Originally published by .


In Dike v. Valley Forge Insurance Company,1 U.S. District Judge Lee Rosenthal ruled that the insurer’s compliance with the policy’s claims handling provisions and with provisions of Texas Insurance Code were not conditions precedent for compelling appraisal; and the carrier’s delay in seeking appraisal did not waive insurer’s right to appraisal.

In Dike, the insured brought an action in state court seeking recovery of insurance proceeds for hurricane damage to insured property – from which insured operated his accounting business – for business interruption and loss of rental income. The case was removed to federal court and the insurer moved to compel appraisal.


In her analysis, Judge Rosenthal reasoned that the failure of Valley Forge to comply with the “Claims Handling” provisions of the insurance policy and with provisions of the Texas Insurance Code did not prevent it from seeking appraisal, because compliance with the “Claims…


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Curated by Texas Bar Today. Follow us on Twitter @texasbartoday.






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