|
Commercial Property |
Requirement To Produce
Records |
|
Appraisal Condition |
Requirement To Allow
Inspection After Loss |
Galeria Villas Condominium
Association, Inc. (Galeria) obtained and paid for an insurance policy issued by
Citizens Property Insurance Corporation (Citizens). Hurricane Wilma damaged the
Galeria condominium complex on October 24, 2005. Galeria submitted a sworn
proof of loss that a Citizens adjuster examined, determined that the damage
estimate was less than the property deductible, and declined to pay. This
initial round of claim administration was completed some time in 2006.
Galeria retained Preferred
Claim Solutions, Inc. (Preferred), a public adjuster who prepared detailed
estimates for repairs in the amount of $1,866,054.86. (Preferred replaced the
initial public adjuster that Galeria had retained in 2007). It submitted the
estimates to Citizens in May 2009, accompanied by an initial demand for
appraisal. Citizens acknowledged receiving the documents in a letter dated May
28, 2009, reserved various rights, requested 13 different categories of
documents, and asked for a final signed, sworn proof of loss. Galeria provided
the requested proof of loss in July 2009. Citizens acknowledged receiving it in
its August 10, 2009 letter but pointed out inconsistencies from Preferred's
earlier estimates. It again requested the 13 sets of documents and complained
that Galeria denied Citizen's loss consultant's access to the premises since
the initial inspection in 2005.
Shortly afterwards, Galeria
sued Citizens for breach of the insurance policy and the appraisal condition. A
month later it filed a motion to compel appraisal and Citizens moved to strike
that motion. Galeria then filed affidavits and copies of many of the documents
Citizens previously requested. One of the affidavits acknowledged that Galeria
had denied Citizen's request that its loss consultant be allowed to re-inspect
the damaged buildings. In addition, in responding to discovery inquiries,
Galeria acknowledged that it did not provide copies of some of the documents
that Citizens requested nine months earlier. Galeria argued that these requests
were overbroad, ambiguous, and not relevant to adjustment of the insurance
claim. The trial court agreed with Galeria and ordered an appraisal. Citizens
appealed.
The appellate court noted
that the Citizens request for records may have seemed broad but the types of
documents it requested typically contain information that bear directly on the
claim and the obligations of the various parties involved with it. It also
noted that Florida law required Galeria to keep such records. The court also
noted that Galeria cannot refuse the insurance company loss consultant's access
to the damaged property and insist rather that the company send an adjuster.
The duty in the policy required Galeria to permit Citizens to inspect the
property in order to prove the loss or damage as often as it reasonably
required.
The court determined that,
until these conditions were met and Citizens had a reasonable opportunity to
investigate and settle the claim, there was no "disagreement" (so as
to invoke the appraisal condition) as to the value of the property or the
amount of loss. It reversed the trial court's order compelling appraisal and
remanded for further proceedings in what it anticipated would be Galeria's complete
and immediate cooperation in providing any remaining records and
allowing access to the property, as well as Citizen's promptly responding
to and investigating the claim.
District Court of Appeal of
Florida, Third District. Citizens Property Insurance Corporation, Appellant v.
Galeria Villas Condominium Association, Inc., Appellee. No 3D10-807. Nov. 24,
2010. 48 So.3d 188