Another Win For The Good Guys!

State Farm waived its right to appraisal by actively participating in litigation.

The Fifteenth Judicial Circuit, in its appellate capacity, quashed a county court’s order granting State Farm’s Motion to Abate Action and Compel Appraisal with the insured.  The water mitigation company in that case brought an action for breach of contract after State Farm failed to pay the company’s full invoice.

In response to the lawsuit State Farm filed several motions and responsive pleadings before filing its Motion to Abate Action and Compel Appraisal.  The trial court granted State Farm’s Motion and ordered appraisal with the insured.

On appeal, the water mitigation company argued State Farm’s actions amounted to a waiver.  State Farm argued that waiver of appraisal had to be in writing pursuant to the terms of the policy.  The appellate Court found that State Farm’s active participation in litigation process waived its right to appraisal.

Insurance companies frequently waive their right to appraisal through their own actions.  If your insurance company has invoked appraisal but is acting inconsistent with the appraisal process they may have waived their right to the appraisal process.

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