In Parrish, the Florida Supreme Court confirmed that a public adjuster who has a contingency interest in an insured’s appraisal award or who represents an insured in an appraisal process may not serve as a “disinterested appraiser” under an insurance policy’s appraisal provision.
In the underlying case, Parrish submitted a claim to State Farm for damages to his house caused by Hurricane Irma and retained a public adjusting company to represent his interests regarding the claim. The public adjusting company also received a contingency interest in the outcome of the claim. After the adjusting company provided a loss amount that State Farm disputed, the parties proceeded to appraisal as outlined in the policy. Parrish attempted to designate the president and namesake of the adjusting company as the “disinterested appraiser” to oversee that process. State Farm objected. The Second District Court of Appeal held that the appraiser selected by Parrish was not a “disinterested appraiser” under the policy’s appraisal provision.
On review at the Florida Supreme Court, the Florida Justice Reform Institute submitted an amicus brief in support of State Farm, arguing that to the extent older, purportedly “conflicting” decisions might support a holding that such an interested appraiser could serve, such decisions relied on outdated authorities and failed to recognize the current legal landscape where Florida’s property insurance crisis has worsened and related litigation has steadily climbed.
The Florida Supreme Court affirmed, looking to the plain language of State Farm’s policy to confirm that a “disinterested” party is one who does not have a pecuniary interest in the manner at hand. In line with the Institute’s arguments, the Court also rejected Parrish’s contention that older district court of appeal decisions should change the result. Thus, because the proposed appraiser undoubtedly had a pecuniary interest, he could not serve as a “disinterested” appraiser.
The Institute was represented by William W. Large and Jason Gonzalez, Elise Engle and Amber Stoner Nunnally of Shutts & Bowen LLP.