Meyer v. State Farm Fire & Casualty Co.

WILNER, Chief Judge.

For over 100 years, it has been common — indeed standard — for fire insurance policies to contain a clause requiring disputes concerning the amount of a covered loss suffered by the insured to be resolved through an appraisal process. Such a clause is at issue here. It provides, in relevant part, that, if the company and the insured are unable to agree on the amount of loss, either one can demand that the amount be determined by appraisal. Upon such a demand, each party is obliged to select an appraiser; the two appraisers so selected then “select a competent, impartial…