People’s Trust v. Fernandez

by | Mar 9, 2021 | News Publications

Third DCA finds that post-suit appraisal demand was ripe when Insured had complied with all post-loss obligations.

In Fernandez, People’s Trust invoked the option to repair and requested that the Insured submit a sworn proof of loss if it disputed the scope of repairs put forth by People’s Trust under the option to repair.   The Insured submitted a sworn proof of loss, however People’s Trust did not respond to the proof of loss, rather it appears to have missed this correspondence, and continued to request a sworn proof of loss and estimate.  The Insureds then filed a two count complaint – one for breach of contract and another for declaratory judgment.  People’s Trust moved to dismiss/stay and compel appraisal.  The Court ultimately denied and ordered People’s Trust to answer the complaint.  The appellate court reversed finding that People’s Trust did not waive its right to participate in appraisal by failing to respond to the proof of loss.  The appellate court concluded that all post-loss obligations had been met and appraisal was ripe.