resolve a dispute over the amount of loss . In one particular case , a court was required to determine whether an assignee can avoid appraisal if the insurer does not notify the assignee of the ability to participate in mediation . In SFR Servs ., LLC v . Empire Indem . Ins . Co ., 13 the assignee attempted to avoid appraisal because the insurer did not provide the statutory notice of the right to mediation to the assignee . The court analyzed Fla . Stat . § 627.7015 and determined that an insurer is required to notify a “ policyholder ” of the right to mediation , and “ policyholder ” does not extend to an assignee . 14 Additionally , in reaching its decision , the court also noted that an insurer is not required to participate in mediation requested by a third-party assignee . 15 Accordingly , the court ordered that the appraisal process move forward .
V . Conclusion
Appraisal is a favored form of alternative dispute resolution in first-party claims involving a dispute over the amount of loss . It avoids costly litigation and saves a considerable amount of time . However , an insurer can waive its right to appraisal by failing to notify a policyholder of the right to participate in mediation . Accordingly , insurers and their counsel should be familiar with the requirements of § 627.7015 , Fla . Stat . and the various arguments referenced above .
Ryan S . Parker is a senior associate in the St . Petersburg Office of Traub Lieberman Straus & Shrewsberry , LLP . He became a licensed Florida attorney in 2016 after graduating cum laude from Stetson University College of Law . He specializes in first-party property litigation .
1 . § 627.7015 ( 2 ), Fla . Stat . ( 2023 ). 2 . Id . at ( 7 ).
3 . There are two exceptions to this definition of “[ c ] laim ,” which relate to allegations of fraud and a dispute where there is no coverage based upon agreed facts as to the cause of loss . See 69J-166.031 ( 2 )( c ) 1 a . -b .
4 . 100 So . 3d 720 ( Fla . 2nd DCA 2012 ). 5 . Id . at 721 . 6 . Id . 7 . Id . 8 . Id . at 722 . 9 . Kennedy v . First Protective Ins . Co ., 271 So . 3d 106 , 108 ( Fla . 3d DCA ).
10 . 2023 Fla . App . LEXIS 3134 ( Fla . 4th DCA ) ( Motion for Rehearing Pending at the time this article was written ).
11 . Id . at * 4 12 . Id . at * 9 – 10 13 . 2019 U . S . Dist . LEXIS 150930 , Case No .: 2:19-cv-369-FtM-99NPM 14 . Id . at * 6 – 7 . 15 . Id . at * 7 .
ST . PETERSBURG BAR ASSOCIATION PARACLETE
21