Opinion ID: 1297601
Heading Depth: 1
Heading Rank: 5

Heading: Waiver of the Appraisal Provision.

Text: Having found that the appraisal statute does apply to insurance provided by the Board, we turn to the question of whether the Board waived its right to invoke the appraisal statute. S.C.Code Ann. § 10-7-180 provides in part: [I]n the event of loss or damage, when an agreement as to the extent of such loss or damage cannot be arrived at between the Board and the officials having charge of the property, the amount of such loss or damage to be paid by the Board shall be determined by three appraisers, one to be named by the Board, one by the officer, official or trustee having the damaged or destroyed building in charge, and the third by the two so appointed. The District maintains that the Board waived § 10-7-180 when it entered into a contract with an alternative appraisal provision. We disagree. Mandatory statutory provisions relating to insurance contracts have long been held by this Court to be part of the contract, and any policy provision which controverts an applicable statute is, to that extent, invalid. Jordan v. Aetna Casualty & Surety Company, 264 S.C. 294, 214 S.E.2d 818 (1975). The District further maintains the Board waived § 10-7-180 by failing to invoke it in a timely manner. We disagree. This statutorily-mandated appraisal provision evidences the State's policy favoring the economical appraisal method of resolving disputes between two public entities. Its waiver, therefore, will not be lightly inferred. We agree with the trial court's determination that some showing of prejudice resulting from the delay is required. Accord Carcich v. Rederi: A/B Nordie, 389 F.2d 692 (2d Cir.1968). The District argues it was prejudiced by the delay in that it participated in discovery which would not have been available under the appraisal provision. Any discovery conducted, however, presumably was related to the bad faith claim as well; therefore, we find no prejudice arising from the Board's delay in invoking its statutory right to an appraisal.