Opinion ID: 2276887
Heading Depth: 1
Heading Rank: 5

Heading: appraisal award

Text: [¶ 30] As required by 24-A M.R.S.A. § 3002 (2000), the insurance policy between County Forest and the insurers contained the following clause: Appraisal. In case the insured and this Company shall fail to agree as to the actual cash value or the amount of loss, then, on the written demand of either, each shall select a competent and disinterested appraiser and notify the other of the appraiser selected within twenty days of such demand. The appraisers shall first select a competent and disinterested umpire; and failing for fifteen days to agree upon such umpire, then, on request of the insured or this Company such umpire shall be selected by a judge of a court of record in the state in which the property covered is located. The appraisers shall then appraise the loss, stating separately actual cash value and loss to each item; and, failing to agree, shall submit their differences, only, to the umpire. An award in writing, so itemized, of any two when filed with this Company shall determine the amount of actual cash value and loss. Each appraiser shall be paid by the party selecting him and the expenses of appraisal and umpire shall be paid by the parties equally. [¶ 31] Pursuant to this clause, the insurers selected Cricones as their disinterested appraiser. County Forest notified the insurers that it had selected Hoffman. The insurers' attorney wrote to the attorney for County Forest stating that the insurers are willing to accept a representative of the Alex N. Sill Company as the assured's appraiser in this matter, in order to facilitate the appraisal process. The insurers' acceptance of [County Forest's] nominee shall not be construed as a waiver of any of the terms of the involved policy. Cricones and Hoffman selected Kidder as the umpire. The appraisal process, which began in February 1996 with the nominations of Cricones and Hoffman, concluded a year later with the award. [¶ 32] In its counterclaim, the insurers challenge the appraisal award on the ground that County Forest's appraiser was not disinterested. The parties filed cross-motions for summary judgment on this issue, and the court granted summary judgment for County Forest. The court found that the appraisal process was valid and that the insurers waived their objection to County Forest's appraiser. [3] We review the grant of a summary judgment for errors of law, and we independently examine the record to determine if a genuine issue of material fact exists. See Nevin v. Union Trust Co., 1999 ME 47, ¶ 5, 726 A.2d 694, 696. [¶ 33] Although the insurers contend that the issue of waiver is factual and must be submitted to the factfinder, a review of the statements of material facts reveals no factual dispute. A letter from the attorney for the insurers to the attorney for County Forest, at the time Hoffman was selected by County Forest, states that the insurers believe that Hoffman's employer, the Sill Company, has a direct pecuniary interest in the outcome of the appraisal and is not, for that reason, disinterested. Nonetheless, the letter states, We have been instructed to advise you, however, that the insurers are willing to accept a representative of the Alex N. Sill Company as the assured's appraiser in this matter, in order to facilitate the appraisal process. Although the letter goes on to say that the acceptance of Hoffman should not be construed as a waiver of the terms of the policy, the insurers' specific agreement to accept Hoffman must be construed as a waiver of any objection to Hoffman's participation. [¶ 34] The appraisal award was not to the insurers' liking, and they claim that they can now object on the basis that the Sill Company had an interest in the outcome of the appraisal. By agreeing to proceed with the appraisal process and accepting County Forest's representative in spite of knowledge of a possible interest by the Sill Company, the insurers waived their right to object to the appraisal award on that basis. The court did not err in upholding the appraisal award.