Opinion ID: 2543734
Heading Depth: 3
Heading Rank: 2

Heading: Appraisal

Text: ¶ 35 Although appraisal may be used as another form of alternative dispute resolution, it is not arbitration. Appraisal, in a general sense, is defined as the determination of what constitutes a fair price; valuation; estimation of worth. Black's Law Dictionary 97 (7th ed.1999). An appraisal is an informal, independent investigation conducted by individuals who base their decisions on their own knowledge. Teachworth, 898 F.2d at 1062. An appraisal is conducted without hearing or judicial inquiry. 6 C.J.S. Arbitration § 3 (1975). In addition, unlike arbitration, appraisal ordinarily settles only a subsidiary or incidental matter rather than the main controversy as does an arbitration award. Id.; see also St. Paul Fire & Marine Ins. Co. v. Wright, 97 Nev. 308, 629 P.2d 1202, 1203 (1981) (An appraiser's power generally does not `encompass the disposition of the entire controversy between the parties . . . [but] extends merely to the resolution of the specific issues of actual cash value and the amount of loss.' (quoting In re Delmar Box Co., 309 N.Y. 60, 127 N.E.2d 808, 811 (1955))). ¶ 36 Further, unlike an arbitration award, an appraisal determination is not necessarily binding and enforceable in court. The appraisal determination is either evidence to be considered by the trial court or an award to be enforced, depending upon the contract terms. ¶ 37 Because of the intrinsic differences between arbitration and appraisal, we conclude that neither the Act nor our case law addressing arbitration agreements directly applies to appraisal.