Richard Machado et al. v. Narragansett Bay Insurance Company

Summary

The Rhode Island Supreme Court affirmed summary judgment for Narragansett Bay Insurance Company in a dispute over the insureds’ request for appraisal of water damage to their home. The Court held that the Machados’ nearly two-year delay in requesting appraisal was unreasonable as a matter of law and relieved the insurer of its contractual appraisal obligations. The opinion distinguishes the appraisal requirement recognized in Hahn v. Allstate Insurance Co. when the dispute concerns only the amount or extent of loss.

Holdings

1. The Machados' delay of more than 600 days after the loss, despite receiving and depositing NBIC's payment and receiving notice concerning the policy's 180-day replacement-cost period, was unreasonable as a matter of law and materially prejudiced NBIC.
2. Summary judgment was proper because no genuine issue of material fact existed and the undisputed facts established that the Machados' delayed appraisal demand was unreasonable as a matter of law.
3. Although an insurance appraisal clause generally requires appraisal when coverage is not denied and the dispute concerns only the amount or extent of loss, the Machados' unreasonable delay materially breached their contractual obligations and relieved NBIC of its corresponding obligations.

Questions Presented

1. Whether the Superior Court properly granted summary judgment to NBIC on the Machados' claim that they were entitled to invoke the insurance policy's appraisal provision.
2. Whether the Machados' delay of more than 600 days in requesting an appraisal was unreasonable and materially prejudiced NBIC, thereby relieving NBIC of its contractual obligations.
3. Whether the timeliness and waiver issues had to be submitted to the factfinder rather than resolved as a matter of law.

Disposition

affirmed