Breakwater Commons Association, Inc. v. Empire Indemnity Insurance Company

Summary

The United States District Court for the Middle District of Florida grants in part and denies in part Breakwater Commons Association's amended motion for summary judgment concerning an appraisal award for Hurricane Irma damage. The court holds that the insurer cannot challenge only portions of the appraisal award based on alleged uncovered benefits and directs payment of the remaining actual cash value balance. The court declines to issue an advisory ruling on replacement-cost benefits because the repairs had not yet been completed and withholds final judgment pending resolution of interest and attorney-fee issues.

Holdings

1. After an insurer and insured proceed to appraisal, the insurer may dispute coverage for the loss as a whole or assert applicable policy defenses, but it may not challenge coverage as to only part of the appraisal award. Because Empire did not assert a defense to coverage for the entire claim or a standard policy-condition violation, Breakwater was entitled to confirmation of the actual cash value appraisal award, subject to prior court-ordered reductions.
2. Breakwater was not entitled to a present ruling confirming its entitlement to replacement cost value benefits because those benefits were available only after the required repairs were completed, and the uncompleted claim was not ripe.

Questions Presented

1. Whether Empire could challenge portions of the appraisal award as uncovered benefits after acknowledging a covered loss and participating in appraisal.
2. Whether Breakwater was entitled to an advisory ruling confirming its entitlement to replacement cost value benefits before the required repairs were completed.

Disposition

other