Appraisal

STATE FARM FLORIDA INS. CO. v. COARL HOCHREITER AND MELISSA HOCHREITER, No. 5D2272 (Feb. 3, 2023)

KK TAKEAWAY: Due process violation occurs when the trial court confirms the appraisal award without considering defenses to the complaint.

BACKGROUND:

In response to a complaint filed for breach of contract against State Farm, State Farm demanded appraisal. An appraisal award came back in favor of the Insureds, and they subsequently sought to confirm the award. State Farm did not respond to the complaint within 20 days of the award as required by the trial court’s order compelling appraisal. At the hearing on the motion to confirm the appraisal award, State Farm argued that the Insureds did not demonstrate they were entitled to a roof replacement as they did not provide building code requirements showing that the roof had to be replaced. State Farm argued that payment was not due as policy conditions were unmet. The trial court confirmed the appraisal award and entered judgment in favor of the Insureds.

State Farm appealed, arguing that the trial court failed to provide due process by entering judgment without consideration for State Farm’s defenses. The Fifth District agreed with State Farm and remanded the case back to the trial court. The Fifth District held that the trial court did not allow State Farm to present all of its defenses on the substantive merits of the complaint.