X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Duke Holzman Photiadis & Gresens LLP, Buffalo (Thomas D. Lyons of Counsel), for Petitioners-Appellants. Rupp Pfalzgraf, LLC, Buffalo (Brandon Snyder of Counsel), for Respondent-Respondent. Appeal from an order of the Supreme Court, Erie County (Raymond W. Walter, J.), entered August 25, 2022. The order, among other things, set aside the appraisal award and remitted the matter for further deliberations. It is hereby ORDERED that the order so appealed from is unanimously modified on the law by vacating that part of the first ordering paragraph remitting the matter to the court-appointed umpire and the appraisers for further deliberations consistent with the insurance policy requirements, and by vacating the second through fourth ordering paragraphs in their entirety, and as modified the order is affirmed without costs. Memorandum: Petitioners are the owners of a residence that was insured by respondent against loss or damage caused by fire. In early 2019, petitioners’ home was damaged in a fire. Petitioners submitted a claim under their policy with respondent, and respondent, after conducting an investigation, issued actual cost value payments to petitioners totaling approximately $370,000. Dissatisfied with this outcome, petitioners demanded an appraisal of the loss with respect to, inter alia, the replacement cost value and actual cost value of the home, pursuant to the terms of the insurance policy and Insurance Law § 3404 (e). Respondent initially rejected petitioners’ demand for an appraisal. Petitioners thereafter commenced this proceeding seeking, inter alia, to compel respondent to participate in an appraisal. Supreme Court granted the petition to compel appraisal, and each party nominated an appraiser. The court thereafter appointed an umpire to work with the dueling appraisers and, after the umpire issued an appraisal award, petitioners moved for, inter alia, an order confirming the award. Respondent opposed the motion, contending that the award should not be confirmed due to errors made by the umpire. The court, inter alia, set aside the appraisal award. Petitioners appeal, as limited by their brief, from the order insofar as it remitted the matter to the umpire and the appraisers for further deliberations consistent with the requirements of the insurance policy. Initially, we conclude that petitioners’ contention that the court erred in remitting the matter for further appraisal proceedings is preserved for our review because petitioners specifically advanced that argument before the motion court (cf. McGuire v. McGuire, 214 AD3d 1310, 1310 [4th Dept 2023]; see generally CPLR 5501 [a]; Ciesinski v. Town of Aurora, 202 AD2d 984, 985 [4th Dept 1994]). On the merits, we agree with petitioners that the court erred in remitting the appraisal to the umpire and appraisers for further deliberations. It is well settled that “after an appraisal proceeding has terminated in an award and the award has been set aside, without any fault on the part of the insured[s], [they] need not submit to any further appraisement but may sue on the policy” (Gervant v. New England Fire Ins. Co., 306 NY 393, 400 [1954]; see Matter of Delmar Box Co. [Aetna Ins. Co.], 309 NY 60, 64 [1955]; see generally Aetna Ins. Co. v. Hefferlin, 260 F 695, 700 [9th Cir 1919]). Here, it is undisputed that the court set aside the appraisal award due to errors made by the court-appointed umpire—i.e., not due to any fault of petitioners. Consequently, the court could not properly compel petitioners to participate in further appraisal proceedings (see Gervant, 306 NY at 400). Indeed, we note that petitioners are now entitled to pursue a plenary action in Supreme Court seeking full recovery on their insurance claim under the policy (see id.; see generally Kaiser v. Hamburg-Bremen Fire Ins. Co., 59 App Div 525, 526, 531 [4th Dept 1901], affd 172 NY 663 [1902]; Uhrig v. Williamsburg City Fire Ins. Co., 101 NY 362, 366 [1886]). We therefore modify the order by vacating that part of the first ordering paragraph remitting the matter to the umpire and appraisers. We further modify the order by vacating the second through fourth ordering paragraphs in their entirety.

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

More From ALM

With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now
Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now
Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now
September 05, 2024
New York, NY

The New York Law Journal honors attorneys and judges who have made a remarkable difference in the legal profession in New York.


Learn More
May 15, 2024
Philadelphia, PA

The Legal Intelligencer honors lawyers leaving a mark on the legal community in Pennsylvania and Delaware.


Learn More
May 16, 2024
Dallas, TX

Consulting Magazine recognizes leaders in technology across three categories Leadership, Client Service and Innovation.


Learn More

We are seeking an associate to join our Employee Benefits practice. Candidates should have three to six years of employee benefits experienc...


Apply Now ›

Associate attorney position at NJ Immigration Law firm: Leschak & Associates, LLC, based in Freehold, NJ, is looking for a full time ass...


Apply Now ›

Seeking a compassionate and experienced estate administration attorney for growing boutique estate planning and elder law practice. Huge eq...


Apply Now ›
04/29/2024
The National Law Journal

Professional Announcement


View Announcement ›
04/15/2024
Connecticut Law Tribune

MELICK & PORTER, LLP PROMOTES CONNECTICUT PARTNERS HOLLY ROGERS, STEVEN BANKS, and ALEXANDER AHRENS


View Announcement ›
04/11/2024
New Jersey Law Journal

Professional Announcement


View Announcement ›