Church Mutual Insurance Company, S.I. v. Ephesus Richmond Seventh-Day Adventist Church, etc.

CourtCourt of Appeals of Virginia
DecidedApril 8, 2025
Docket0628242
StatusPublished

This text of Church Mutual Insurance Company, S.I. v. Ephesus Richmond Seventh-Day Adventist Church, etc. (Church Mutual Insurance Company, S.I. v. Ephesus Richmond Seventh-Day Adventist Church, etc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Church Mutual Insurance Company, S.I. v. Ephesus Richmond Seventh-Day Adventist Church, etc., (Va. Ct. App. 2025).

Opinion

COURT OF APPEALS OF VIRGINIA PUBLISHED

Present: Chief Judge Decker, Judges Malveaux and Callins Argued by videoconference

CHURCH MUTUAL INSURANCE COMPANY, S.I. OPINION BY v. Record No. 0628-24-2 CHIEF JUDGE MARLA GRAFF DECKER APRIL 8, 2025 EPHESUS RICHMOND SEVENTH-DAY ADVENTIST CHURCH, A/K/A EPHESUS RICHMOND SDA CHURCH

FROM THE CIRCUIT COURT OF THE CITY OF RICHMOND Bradley B. Cavedo, Judge

Robert E. Draim (David D. Hudgins; Hudgins Law Firm, P.C., on briefs), for appellant.

(Stephen E. Heretick; Louis N. Joynes, II; Stephen E. Heretick, P.C.; Joynes & Gaidies, P.C., on brief), for appellee. Appellee submitting on brief.

Church Mutual Insurance Company, S.I. (Church Mutual or the insurer), appeals the

circuit court’s ruling sustaining the demurrer of Ephesus Richmond Seventh-Day Adventist

Church (Ephesus). This ruling resulted in the dismissal of Church Mutual’s application to

modify an insurance appraisal award under Code § 8.01-581.011. The award was made pursuant

to the terms of the parties’ insurance contract. Church Mutual contends that the court erred by

concluding the appraisal award was not an arbitration award reviewable under the arbitration

statute. The insurer also challenges related legal rulings and factual findings.

We do not consider three of Church Mutual’s assignments of error because we conclude

they are waived. On the merits, based on the language of the insurance contract, we hold that the

circuit court correctly ruled it lacked jurisdiction to review the award under the statute pleaded.

We therefore do not consider the remaining assignments of error because they challenge determinations that we vacate due to our affirmance of the circuit court’s ruling that it lacked

jurisdiction. Lastly, we deny the parties’ requests for appellate attorney fees and costs.

BACKGROUND1

Ephesus contracted with Church Mutual for property insurance. In 2021, Ephesus filed a

claim alleging that wind and hail had damaged the church building during the policy coverage

period. Church Mutual’s inspector concluded that damage to the flat portion of the roof and the

church interior resulted from ordinary “weathering” and “footfalls” and that only the sloped

portion of the roof and the gutters sustained storm damage. As a result, Church Mutual

disallowed coverage for most of Ephesus’s claim and issued a check for $59,084.05.

Ephesus challenged the amount paid on its claim. The parties’ insurance contract

outlined the process for resolving disputes over the dollar amount of claims payments. Form A

100, § C(2) (Jan. 2001). Each party was to select a “competent and impartial appraiser.” Id. If

the two appraisers agreed upon the dollar amount of the loss, their decision would bind both

parties. Id. If they did not agree, they were to submit their competing appraisals to a previously

selected “umpire.” Id. If the umpire’s valuation matched that of either appraiser, the contract

provided that the agreed-upon valuation was binding. Id.

The appraiser selected by Church Mutual estimated the net replacement cost value, less

depreciation and other deductions, at $68,148.78. This estimate entitled Ephesus to an increase

of $9,064.73 in the claim payment. The appraiser selected by Ephesus, however, provided a

much greater estimated net replacement cost value, less depreciation, of $1,692,642.89. The

1 This Court views the underlying facts pleaded by Church Mutual in the light most favorable to it. See Hooked Grp., LLC v. City of Chesapeake, 298 Va. 663, 667 (2020) (holding that in reviewing a demurrer, the appellate court “consider[s] as admitted the facts expressly alleged and those [that] fairly can be viewed as impliedly alleged or reasonably inferred from the facts alleged” (quoting Welding, Inc. v. Bland Cnty. Serv. Auth., 261 Va. 218, 226 (2001))). -2- umpire selected by the two appraisers concurred with the higher valuation of almost $1.7

million.2 He and the appraiser for Ephesus endorsed an appraisal award reflecting that valuation.

Church Mutual asked the circuit court to “modify or correct [the] appraisal award.” It

relied exclusively on Code § 8.01-581.011, a part of Virginia’s Uniform Arbitration Act, Code

§§ 8.01-581.01 to -581.016 (VUAA). Ephesus filed a demurrer.3

In hearings held in 2022 and 2023, the circuit court conducted what it described as a

“bench trial on th[e] insurance roof issue.” The parties presented testimony from the appraisers

and the umpire about the nature of their involvement in the valuation process. The court also

admitted the entire insurance contract into evidence.

During the course of the hearings, Ephesus filed a “renew[ed] . . . demurrer,” this time

arguing that the appraisal award was not an arbitration award subject to review under Code

§ 8.01-581.011. Based on this claim, it contended that the circuit court did not have subject

matter jurisdiction under the statute pleaded. Church Mutual maintained that the court had

jurisdiction to review the appraisal award under the statute cited, but it acknowledged the

absence of any “cases on point in Virginia.”

The court ruled that the contract of insurance, drafted by Church Mutual, provided for an

appraisal, not arbitration. It noted that Code § 8.01-581.011, the statute the insurer relied upon,

permitted “modif[ication of] arbitration awards exclusively, with no reference to appraisals.”

The court reasoned that the cases Church Mutual cited did not persuade it to treat the appraisal

procedure as an arbitration provision. It also made several findings related to the appraisal

2 The appraiser for Church Mutual limited his estimate to the damage sustained by the sloped roof, gutters, and “HVAC units,” the only items that Church Mutual’s inspector concluded had sustained covered storm damage. The umpire and the appraiser for Ephesus, by contrast, included the damage to the flat roof and the church interior in their calculations. 3 Ephesus separately asked the circuit court to confirm the award under Code § 8.01-581.09, a different part of the VUAA. The circuit court consolidated the two cases. -3- itself.4 Based on those determinations, the court held that it lacked jurisdiction, denied Church

Mutual’s “[a]pplication to [m]odify or [c]orrect [the a]ppraisal [a]ward,” and dismissed the

matter with prejudice.

ANALYSIS

Church Mutual argues that the circuit court erred by ruling that Code § 8.01-581.011 did

not allow it to modify the insurance appraisal award due to the language of the insurance

contract. It also challenges several related legal rulings and factual findings.

I. Rule 5A:20 Deficiencies in Church Mutual’s Brief

We hold first that some of Church Mutual’s assignments of error are waived based on

deficiencies in its brief.

Rule 5A:20(e) requires that the appellant’s opening brief contain “[t]he standard of

review and the argument (including principles of law and authorities) relating to each assignment

of error.” As Virginia’s appellate courts have repeatedly held, “[u]nsupported assertions of error

‘do not merit appellate consideration.’” Bartley v. Commonwealth, 67 Va. App. 740, 744 (2017)

(quoting Jones v. Commonwealth, 51 Va. App. 730, 734 (2008), aff’d in part and vacated in part

on other grounds, 279 Va. 52 (2010)), cited with approval in Coward v. Wellmont Health Sys.,

295 Va. 351, 367 (2018) (applying the Supreme Court of Virginia’s “textually similar” Rule

5:27(d)). It simply is not the appellate court’s “role . . . to . . .

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