FRANK'S BLOG

HAVE YOU BEEN WONDERING WHAT THE LEGAL
PROCESSES ON OUR INSURANCE CLAIM ARE ALL ABOUT?
GARY MILLER ONE OF OUR KEY LITIGATION ATTORNEYS WITH FREEMON LAW HAS PROVIDED SOME EXPLANATORY COMMENTS AT OUR REQUEST TO HELP US ALL UNDERSTAND A BIT MORE.

BY GARY MILLER, Esq.-- FREEMON LAW-- TAMPA, FLORIDA AUG 31, 2005

Currently, the Association’s claim is in the appraisal process. The Association’s appraiser is Harvey Goodman, a nationally recognized figure in this area. The insurance company, Empire, has selected as their appraiser Erik Jaeger, an individual who also has experience appraising large losses. The two appraisers will, in turn, select an impartial umpire. These three will consider each item of damage being claimed by the Association. Agreement by any two of the three will decide the amount to be awarded as to any particular element of the damages in issue. Ultimately, when all is said and done, these three will render an overall appraisal award that will set forth the total amount of damages due to the Association for its claim under the policy. There are some means to challenge an appraisal award, but they are quite limited. Thus, although there are exceptions, an appraisal award most often represents the amount the claimant recovers under the insurance contract. Where, as in this case, appraisal was demanded after suit was filed, the Association would also be entitled to recover the amount of attorney fees awardable under F.S. 627.428.

In addition to appraisal, another means of resolving claims for property damage is mediation. Mediation is an informal process wherein the parties meet with a mediator, who is often an attorney or other person trained as a mediator, to discuss the case and attempt to negotiate a settlement. Mediation differs fundamentally from appraisal in that the mediator has no power or authority to make an award, render a decision or order or direct the parties to settle the case, whereas the appraisers and umpire have the authority to render a decision. The mediator attempts to bring about settlement much in the same way a skilled diplomat seeks to negotiate a treaty between countries with differing interests. Even though an appraisal is ongoing, the Federal District Court has ordered the Association and Empire to mediate their dispute. The court’s philosophy is that even though appraisal may ultimately result in a resolution of the case, that is the number of months down the road and it is at least a possibility that mediation can resolve the case quicker. Mediation is currently scheduled for December 2, 2005. The parties have agreed to utilize the services of Terry White as mediator. Mr. White is a very capable and experienced mediator who has handled many large cases.


Note to see the referenced Florida Statute go up to our Links and click on Florida Statutes and go to F.S. 627.428

Many thanks from the Board to Gary Miller for his helpful comments!