W.V. Realty Inc. v. Maryland Insurance Group

48 Pa. D. & C.4th 459, 2000 Pa. Dist. & Cnty. Dec. LEXIS 260
CourtPennsylvania Court of Common Pleas, Lackawanna County
DecidedMay 15, 2000
Docketno. 98 CV 5938
StatusPublished

This text of 48 Pa. D. & C.4th 459 (W.V. Realty Inc. v. Maryland Insurance Group) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Lackawanna County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
W.V. Realty Inc. v. Maryland Insurance Group, 48 Pa. D. & C.4th 459, 2000 Pa. Dist. & Cnty. Dec. LEXIS 260 (Pa. Super. Ct. 2000).

Opinion

MINORA, J.,

I. INTRODUCTION

Two matters are currently before the court. The first is plaintiff’s petition to confirm appraisal award pursuant [460]*460to 42 Pa.C.S. §7341. The second is defendant’s motion to vacate appraisal award. Since they are essentially two sides of the same coin, we will dispose of both matters with this one opinion.

Some background information is necessary to explain how we arrived at this point. The plaintiffs, W.V. Realty Inc. and New Montage Manor Inc., were the owners of a motel, restaurant and catering business located in Moosic, Pennsylvania. On January 12,1996, the roof of the subject building collapsed under the weight of accumulated snow.

The defendant, Northern, had issued an insurance policy to the plaintiffs which provided coverage between August 24,1995 and August 24,1996 providing for business interruption and building damage. (See exhibit “A” to defendants’ motion to vacate appraisal award.)

After the parties were unable to amicably agree on an adjustment of the loss, the court upon petition appointed Edward Krowiak, Esquire as a neutral umpire with the direction that “The umpire and appraisers are directed to proceed with determining the amount of the plaintiff’s losses and claims, in accordance with the terms and conditions of the insurance policy issued by the defendant.” (See court order of March 3, 1999 by Judge Terrence Nealon.)

On September 13, 1999, the defendants filed a motion to limit appraisal solely to a determination of the amount of business interruption loss sustained by W.V. Realty.

On September 13, 1999, the undersigned summarily denied this motion to limit the appraisal and the full appraisal was conducted on September 15,1999 before the umpire, Edward Krowiak, Esquire. The proceeding was [461]*461conducted by submissions and arguments by counsel. No stenographic record was made. This was all done by agreement of counsel.

An appraisal award was subsequently issued by the neutral umpire and joined by the appraiser appointed by plaintiff on December 6, 1999 which itemized the following losses:

Business interruption: $ 695,706.39

Subject to policy limit of: $ 650,000.00

Extra expenses for return deposits: $ 25,358.31

Building and personal property: $ 549,840.00

Debris removal: $ 16,200.00

Total: $ 1,241,398.30

The umpire further gave a credit for any monies paid by the defendant to that date. He also awarded interest from October 6, 1996 (30 days after the date all necessary information was submitted to defendants to evaluate loss) until the loss is paid. (See exhibit “H” to defendants’ motion to vacate appraisal award.)

On January 5, 2000, the defendants filed a motion to vacate appraisal award. On January 24, 2000, plaintiffs filed a petition to confirm appraisal award pursuant to 42 Pa.C.S. §7341.

On January 24, 2000, the plaintiffs were also granted a rule to show cause why the appraisal should not be confirmed and also why that instant petition to confirm should not be consolidated with the defendant’s motion to vacate the appraisal award. Rule was returnable on February 21, 2000 at 9 a.m. with an argument scheduled, if necessary, for March 23, 2000 at 9:30 a.m. On January 24, 2000, the plaintiff also filed an answer to defendant’s motion to vacate appraisal award.

[462]*462On February 24,2000, President Judge James J. Walsh issued an order making the rule of January 24, 2000 absolute and ordering the arbitrator’s award confirmed and dismissing defendant’s motion to vacate for failure to answer the rule returnable of January 24, 2000.

However, the record indicates that on February 22, 2000, the defendants had, in fact, filed a response in opposition to plaintiff’s petition to confirm appraisal award pursuant to 42 Pa.C.S. §7341.

On March 20, 2000, the plaintiffs filed a brief in support of confirmation of appraisal award and denial of motion to vacate.

On March 21, 2000, the defendants filed a brief in support of defendants’ motion to vacate appraisal award and in opposition to plaintiff’s motion to affirm appraisal award.

The court entertained oral argument on March 23,2000 and also received several follow-up informal letter submissions by counsel after the argument date of March 23, 2000.

All submissions have now concluded and the matter is now ripe for disposition.

II. ISSUE(S)

(1) Should the appraisal award of December 6, 1999 be confirmed pursuant to 42 Pa.C.S. §7341?

(2) Conversely, should the appraisal award of December 6, 1999 be vacated?

m. DISCUSSION

Before we proceed, it has come to the court’s attention that counsel have agreed prior to this matter being [463]*463brought to the undersigned for resolution that the rule absolute of Judge Walsh of February 22, 2000 will be disregarded and that the above issues will and should be decided on their merits. We will now do so.

A. The Scope of Review

The relevant statutory authority is contained at 42 Pa.C.S. §7341 which states in pertinent part:

“The award of an arbitrator in a non-judicial arbitration ... is binding and may not be vacated or modified unless it is clearly shown that a party was denied a hearing or that fraud, misconduct, corruption or other irregularity caused the rendition of an unjust, inequitable or unconscionable award.”

Let us note that both the appraisal and arbitration process are intended as alternatives in litigation whereby the parties submit the issues in dispute to an independent counsel for resolution. The only distinction between arbitration and appraisal is the scope of issues encompassed in each proceeding. An appraisal is limited to determining the amount of loss with all other issues reserved for settlement by either negotiation or litigation, while arbitration considers all issues necessary for disposition of the entire controversy between the parties. Ice City Inc. v. Insurance Co. of North America, 456 Pa. 210, 314 A.2d 236(1974).

For purposes of enforceability, there is no distinction between arbitration and appraisal and both will be reviewed accordingly. McGourty v. Pennsylvania Millers Mutual Insurance Co., 704 A.2d 663 (Pa. Super. 1997); Riley v. Farmers Fire Insurance Co., 735 A.2d 124 (Pa. Super. 1999).

[464]*464The trial court’s scope of review in appraisal matters is much more limited than a typical arbitration provision since appraisal provides only for resolution of issue of valuation while arbitration provides for resolution of the entire controversy between the parties. Boulevard Associates v. The Seltzer Partnership, 445 Pa. Super. 10, 664 A.2d 983 (1995); Ice City Inc. v. Insurance Co.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Giant Markets, Inc. v. Sigma Marketing Systems, Inc.
459 A.2d 765 (Superior Court of Pennsylvania, 1983)
Jacobson & Co. v. International Environment Corp.
235 A.2d 612 (Supreme Court of Pennsylvania, 1967)
Gwin Engineers, Inc. v. Cricket Club Estates Development Group
555 A.2d 1328 (Supreme Court of Pennsylvania, 1989)
Riley v. Farmers Fire Insurance Co.
735 A.2d 124 (Superior Court of Pennsylvania, 1999)
Ligon v. Middletown Area School District
584 A.2d 376 (Commonwealth Court of Pennsylvania, 1990)
Boulevard Associates v. Seltzer Partnership
664 A.2d 983 (Superior Court of Pennsylvania, 1995)
Hall v. Nationwide Mutual Insurance
629 A.2d 954 (Superior Court of Pennsylvania, 1993)
J. Purdy Cope Hotels Co. v. Fidelity-Phenix Fire Insurance
191 A. 636 (Superior Court of Pennsylvania, 1937)
In re Superior-Pacific Fund, Inc.
693 A.2d 248 (Commonwealth Court of Pennsylvania, 1997)
McGourty v. Pennsylvania Millers Mutual Insurance
704 A.2d 663 (Superior Court of Pennsylvania, 1997)
Garages v. Transport Workers Union of America
406 Pa. 370 (Supreme Court of Pennsylvania, 1962)
Tops Apparel Manufacturing Co. v. Rothman
244 A.2d 436 (Superior Court of Pennsylvania, 1968)
Ice City, Inc. v. Insurance Co. of North America
314 A.2d 236 (Supreme Court of Pennsylvania, 1974)

Cite This Page — Counsel Stack

Bluebook (online)
48 Pa. D. & C.4th 459, 2000 Pa. Dist. & Cnty. Dec. LEXIS 260, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wv-realty-inc-v-maryland-insurance-group-pactcompllackaw-2000.