Minnesota Litigation News

SKJOLD ▪ BARTHEL WINS IMPORTANT APPELLATE VICTORY INVOLVING INSURANCE COVERAGE DISPUTES

Impact may extend to all businesses involved in insurance disputes with mandated arbitration or appraisal process process 

MINNEAPOLIS, MN – (March 11, 2010) – Skjold ▪ Barthel won an important appellate victory for businesses in coverage disputes with their insurance carriers where the insurance contract requires submission of the dispute to an arbitration and/or appraisal process.  The decision makes it more difficult for insurance carriers to reject the findings of an arbitration or appraisal panel, even where it is alleged that the non-attorney panel made policy determinations or conclusions of law.  Rather than incur costly litigation over insurance disputes, businesses and other property owners can now rely on the arbitration or appraisal process mandated in their policies when insurable claims are in dispute. 

Although this case directly involved a dispute between a homeowners association and its insurer regarding storm damage, its impact may extend to all businesses involved in insurance coverage or contract disputes in which an arbitration or appraisal process has been contractually agreed upon.

Affirming earlier District Court rulings, the Minnesota Court of Appeals recently rejected the attempt by appellant QBE Insurance Corporation (“QBE”) to overturn an action in which the Twin Homes of French Ridge Homeowners Association (“Twin Homes”) was awarded full replacement of hail-damaged roofing following a contractually agreed upon appraisal process.

In QBE Insurance Corporation v. Twin Homes of French Ridge Homeowners Association, — N.W.2d —, 2010 WL 607409, *1 (Minn. Ct. App. Feb. 23, 2010)., the appellant unsuccessfully challenged the district court’s decision on the grounds that the contractually agreed upon appraisal panel exceeded the scope of its authority, arguing that the appraisal award amounted to a coverage determination and conclusion of law.  The appellant also was also ineffective in challenging the district courts’ dismissal of its request for a continuance for further discovery in the case.  

Christopher P. Parrington, a shareholder with Skjold ▪ Barthel, who has appeared before the Minnesota Court of Appeals in a number of important commercial contract cases, led the Skjold ▪ Barthel litigation team on behalf of the respondent in both the district and appellate courts.  The Skjold ▪ Barthel litigation team handled all aspects of this case for the respondent, from the initial pleadings in the district court, through the oral arguments before the Minnesota Court of Appeals.

Media Contact:
Liz Dunlap Hersey
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