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Runaway Bay Condo. Ass'n v. Phila. Indem. Ins. Cos.

Runaway Bay Condo. Ass'n v. Phila. Indem. Ins. Cos.

United States District Court for the Northern District of Illinois, Eastern Division

April 25, 2017, Decided; April 25, 2017, Filed

No. 16 C 9551

Opinion

 [*600]  MEMORANDUM OPINION AND ORDER

Plaintiff Runaway Bay Condominium Association ("Runaway Bay") brings this action to compel defendant Philadelphia Indemnity Insurance Company ("Philadelphia") to submit the parties' insurance coverage dispute to an appraisal. Before me is Runaway Bay's motion to compel Philadelphia to participate in the appraisal. Subject to the qualification noted below, the motion is granted.1

On August 2, 2015 and February 19, 2016, storms caused damage to buildings in an apartment complex owned by Runaway Bay in Palatine, Illinois. Runaway Bay was insured under a policy ("the Policy") issued by Philadelphia and submitted a claim in connection with the damage. Runaway Bay values its loss at [**2]  $2,597,144.28; Philadelphia's estimate is $33,353.87.

Runaway Bay contends that the parties' dispute should be resolved through an appraisal process. Runaway Bay relies on the following provision of the Policy:

If we and you disagree on the value of the property or the amount of "loss", either may make written demand for an appraisal of the "loss". In this event, each party will select a competent and impartial appraiser. The two appraisers will select an umpire. If they cannot agree, either may request that selection be made by a judge of a court having jurisdiction. The appraisers will state separately the value of the property and amount of "loss". If they fail to agree, they will submit their differences to the umpire.

Property Coverage Form, Ex. 1 to Def.'s Answer (Doc. No. 12-3) at 30.

Philadelphia has refused to appoint an appraiser or to otherwise participate in the appraisal process.2 According to Philadelphia,  [*601]  the motion for appraisal should be denied because Runaway Bay's claim raises issues of coverage under the Policy. According to Philadelphia, such questions can be resolved only by the court. It maintains that the appraisal process is strictly limited to determining the value [**3]  of an insured's loss.

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262 F. Supp. 3d 599 *; 2017 U.S. Dist. LEXIS 62558 **

RUNAWAY BAY CONDOMINIUM ASSOCIATION, Plaintiff, v. PHILADELPHIA INDEMNITY INSURANCE COMPANIES, Defendant.

CORE TERMS

appraisal, replacement, coverage, causation, damaged, repair, prompt notice, overhead, motion to compel, contractor, undamaged, matching, notice, portion of property, appraisal process, physical damage, insured, parties, storms, costs