Reid v. AMCO Ins. CA4/2

CourtCalifornia Court of Appeal
DecidedJune 25, 2014
DocketE055812
StatusUnpublished

This text of Reid v. AMCO Ins. CA4/2 (Reid v. AMCO Ins. CA4/2) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reid v. AMCO Ins. CA4/2, (Cal. Ct. App. 2014).

Opinion

Filed 6/25/14 Reid v. AMCO Ins. CA4/2

NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FOURTH APPELLATE DISTRICT

DIVISION TWO

DONNA WILKERSON REID,

Plaintiff and Appellant, E055812

v. (Super.Ct.No. RIC1118839)

AMCO INSURANCE COMPANY, OPINION

Defendant and Respondent.

APPEAL from the Superior Court of Riverside County. Daniel A. Ottolia and

Ronald L. Taylor, Judges.1 Affirmed.

Law Office of Henry B. LaTorraca and Henry B. LaTorraca for Plaintiff and

Appellant.

1 Judge Taylor is a retired judge of the Riverside Superior Court assigned by the Chief Justice pursuant to article VI, section 6 of the California Constitution.

1 Horvitz & Levy, Lisa Perrochet, Jeremy B. Rosen, Katherine Perkins Ross;

Cannon & Nelms, Anthony L. Cannon, Julia A. Mouser and Garret F. Smith for

Plaintiff and appellant Donna Wilkerson Reid2 appeals from a judgment

confirming an insurance appraisal award. Plaintiffs filed two unrelated claims with

defendant and respondent AMCO Insurance Co. (AMCO) for water damage at their

Temecula home. When AMCO and the Reids could not agree on the value of certain

damaged items, they proceeded to an appraisal in accordance with the terms of their

2 This appeal originally named William and Donna Reid, husband and wife, as plaintiffs and appellants. Mr. Reid died on March 13, 2014, and on April 10, 2014, this court granted Mrs. Reid’s motion to substitute herself as the successor in interest of Mr. Reid. For clarity, we will refer to both Mr. and Mrs. Reid as plaintiffs and appellants in this opinion.

2 insurance policy, as mandated by Insurance Code section 2071.3 As specified by statute

and the insurance policy, the appraisal was conducted by three people—an appraiser

selected by each party and an umpire agreed upon by the two party-selected appraisers.

The appraisal award is determined by the value agreed upon by at least two of three

members. In this case, the umpire agreed with AMCO’s appraiser, Tim DeLise, that the

total value of the loss was $24,000. The Reids’ appraiser, Ted Merrill, had valued the

loss at nearly $400,000. The Reids filed a petition in the trial court to vacate the

appraisal. AMCO opposed that petition and requested the trial court affirm the appraisal

award. The trial court denied the Reids’ petition and confirmed the appraisal award.

3 Insurance Code section 2071, subdivision (a), sets out the provisions that must be included in a standard fire insurance policy issued in California. One of the mandated provisions is entitled “appraisal” and states, “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 request of either, each shall select a competent and disinterested appraiser and notify the other of the appraiser selected within 20 days of the request. Where the request is accepted, the appraisers shall first select a competent and disinterested umpire; and failing for 15 days to agree upon the umpire, then, on request of the insured or this company, the umpire shall be selected by a judge of a court of record in the state in which the property covered is located. Appraisal proceedings are informal unless the insured and this company mutually agree otherwise. For purposes of this section, ‘informal’ means that no formal discovery shall be conducted, including depositions, interrogatories, requests for admission, or other forms of formal civil discovery, no formal rules of evidence shall be applied, and no court reporter shall be used for the proceedings. 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 or her and the expenses of appraisal and umpire shall be paid by the parties equally. In the event of a government-declared disaster, as defined in the Government Code, appraisal may be requested by either the insured or this company but shall not be compelled.”

3 In this appeal from the judgment confirming the appraisal award, the Reids

contend, first, that the trial court erred in refusing their request for a statement of

decision, and next, that the trial court erred in denying their petition to vacate the

appraisal award. We disagree with both claims and, therefore, we will affirm.

FACTUAL AND PROCEDURAL BACKGROUND

In January 2009 and August 2009, water from unrelated sources leaked into the

Reids’ Temecula home and caused damage. The January leak came from a water

softener on an exterior wall outside the master bedroom. The August leak was from a

waterline in the concrete slab under a common wall between the guest bedroom and

bathroom. The first leak damaged carpeting, the second caused what the parties call

“cupping” in the Brazilian cherry hardwood floors in the family room. Cupping refers to

a slight upward curve in the tongue and groove edges of hardwood floorboards, most

likely caused when wood is exposed to moisture and then the moisture is removed.

The Reids submitted separate claims to AMCO for both incidents. In addition,

they claimed their house was not habitable as a result of the leak under the concrete slab.

They also claimed the leak had caused cracks in the slab. AMCO provided the Reids

with outside living expenses so they could move into a rental house.

In January 2010, AMCO and the Reids conducted an inspection to determine the

source of the August water leak. In the course of cutting the concrete slab to expose the

pipes, the sawcutter cut through the hot water recirculating supply line. The interior of

all the cooper waterlines apparently had been coated with epoxy to prevent leaks. A

representative of the company that installed the epoxy coating was present when the

4 recirculating supply line was cut and recommended it be repaired with a SharkBite.

AMCO agreed to repair the line but would not agree to replace the entire line, as the

Reids requested. The Reids discovered in addition to the previously mentioned damage,

that carpeting in their home office had also been damaged by water.

Although it disputed coverage, AMCO paid the Reids about $24,000 in early 2010

to repair the damaged hardwood flooring throughout the house. In April 2010, the Reids

requested an appraisal because they disputed AMCO’s valuation of the loss caused by

damage to the hardwood floor. The Reids selected Ted Merrill as their appraiser.

AMCO selected Tim DeLise. The Reids filed a petition to have DeLise disqualified on

the ground that he was not impartial. They dismissed that petition before the appraisal

hearing.

The parties disagreed on the value of four items: (1) the carpet and pad in the

Reids’ home office; (2) cracks in the concrete slab; (3) the cut in the hot water

recirculation line; and (4) the damage to the hardwood flooring. Before the appraisal

hearing, DeLise and Merrill agreed on the cost to repair the carpeting and concrete slab.4

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Reid v. AMCO Ins. CA4/2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reid-v-amco-ins-ca42-calctapp-2014.