Media Coverage
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Taina Rosa, Olivia Thomas
02.21.18
The Colorado Supreme Court will soon decide a case that could have important implications for litigation involving questions of whether an insurance appraiser’s conduct demonstrates impartiality or bias. The court has announced it will hear Owners Insurance Co.’s challenge of a state Court of Appeals decision affirming a $3 million appraisal award to a Denver Condominium complex owners association for hail damage. Owners’ claims that the appraiser who estimated the complex association’s damages showed bias toward the association, thereby violating the insurance policy’s terms.
The state’s Supreme Court will tackle the question of whether the appeals court decision in this case conflicts with a 1923 ruling in Providence Washington Insurance Co. v. Gulinson, which established that appraisers have the same “duty of impartiality” as arbitrators, according to Law360.
Insurance Recovery & Advisory partner David Klein tells Law360 a ruling adopting the more strict Providence principle may set the stage for additional litigation in appraisal disputes, which would be expensive for policyholders and insurers alike.
“Opening up the discussion over allegations of bias will open the door to extensive discovery over the appraisers’ fee agreement and the nature of the communications between the appraisers and the parties,” Klein said. “That would have an adverse effect on the cost and practicality of the appraisal process.”
For more information, read Law360’s full coverage of the Supreme Court case.