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FLORIDA INSURANCE GUARANTY ASSOCIATION, Appellant, v. JAMES HANSE AND RITA HANSE, Appellees

39 Fla. L. Weekly D2440c
150 So. 3d 1272

Insurance — Sinkhole claim — Right to appraisal was not waived by active litigation of suit — Appraisable issues exist — Error to permit property owners to select their own attorney as disinterested appraiser

FLORIDA INSURANCE GUARANTY ASSOCIATION, Appellant, v. JAMES HANSE AND RITA HANSE, Appellees. 5th District. Case No. 5D13-4501. Opinio filed November 21, 2014. Non-Final Appeal from the Circuit Court for Hernando County, Richard Tombrink, Jr., Judge. Counsel: Dorothy Difiore, of Haas Lewis Difiore, P.A., Tampa, for Appellant. George A. Vaka and Nancy A. Lauten, of Vaka Law Group, Tampa, and Kenneth C. Thomas, Jr., of Marshall Thomas Burnett, Land O’Lakes, for Appellees.

(WALLIS, Judge.) Florida Insurance Guaranty Association (“Appellant”) appeals a non-final order compelling appraisal for James and Rita Hanse (“Appellees”) in a dispute over a sinkhole loss. Appellant raises three issues: (1) Appellees waived their right to demand appraisal because the case has been actively litigated; (2) No issues exist that can be determined by an appraisal panel because only the amount of loss is subject to appraisal under the policy; and (3) Appellees selected an unqualified appraiser. Because we addressed identical arguments on substantially similar facts in Florida Insurance Guaranty Association v. Branco, 39 Fla. Law Weekly D2020 (Fla. 5th DCA Sept. 19, 2014), we affirm, in part, holding Appellees did not waive their right to demand appraisal and appraisable issues exist. However, we reverse, in part, and remand the order to the extent it permits Appellees to select their own attorney as a disinterested appraiser. Id. (“Given the duty of loyalty owed by an attorney to a client, we conclude that attorneys may not serve as their clients’ arbitrators or appraisers when ‘disinterested’ arbitrators or appraisers are bargained for.”).

AFFIRMED in part; REVERSED in part; and REMANDED. (LAWSON and LAMBERT, JJ., concur.)

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