Opinion ID: 1132568
Heading Depth: 1
Heading Rank: 2

Heading: Johnson v. Nationwide Mutual Insurance Company

Text: The relevant facts of the Johnson case are set forth in the district court opinion. Nationwide issued a property insurance policy to the Johnsons on residential property they own and rent to others in Pasco County. The Johnsons reported damage to the property to Nationwide, and Nationwide's subsequent investigation determined that the damage was not the result of a covered cause of loss. The Johnsons contend that their loss was caused by a sinkhole, a covered peril, while Nationwide contends that the loss was caused by earth movement, an excluded cause. The Johnsons instituted this lawsuit for breach of the insurance contract. In response, Nationwide filed a motion to stay the trial court proceedings and sought to invoke its right to appraisal of the amount of loss as provided in the policy. Following a hearing on the motion, the trial court held that it would determine the issue of whether there was a covered loss and then have the appraisal panel determine the dollar amount of the loss. Johnson, 774 So.2d at 780 (footnote omitted). The appraisal clause in Nationwide's policy provided: If we and you disagree on 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 amount of loss. If they fail to agree, they will submit their differences to an umpire. A decision agreed to by any two will be binding. Each party will: a. Pay its chosen appraiser; and b. Bear the other expenses of the appraisal and umpire equally. If there is an appraisal, we will still retain our right to deny the claim. Id. at 780 n. 1. Nationwide filed an interlocutory appeal, and the Second District reverse[d] the trial court's order denying the motion to stay in favor of appraisal and remand[ed] with directions to allow the appraisal to proceed. Id. at 780. The court relied on State Farm Fire & Casualty Co. v. Licea, 685 So.2d 1285 (Fla. 1996), and Florida Select Insurance Co. v. Keelean, 727 So.2d 1131 (Fla. 2d DCA 1999), in holding that causation is an amount of loss issue for the appraisal panel. Johnson, 774 So.2d at 781. The court recognized that coverage issues are exclusively judicial questions but found that Licea and Keelean lead us to the conclusion that a factual determination of whether the loss here was caused by a sinkhole or earth movement is an inquiry for the appraisal panel. Id. The court then stated that the First District's decision in Opar v. Allstate Insurance Co., 751 So.2d 758 (Fla. 1st DCA), review denied, 767 So.2d 459 (Fla.2000), appears to conflict with the Johnson and Keelean decisions. See Johnson, 774 So.2d at 781.