Dist. Ct. did not err in dismissing plaintiff-insured’s lawsuit seeking to set aside umpire’s calculation of actual cash value of plaintiff’s restaurant that had been destroyed in fire. Term of policy allowed parties to select their own appraisers, and if there was no agreement to have appraisers to select umpire to calculate binding actual cash value for said restaurant. Record showed that selected umpire calculated actual cash value of restaurant at $939,136.58, and plaintiff filed instant action, alleging that said calculation was invalid under state law. Dist. Ct., though, could properly hold plaintiff to agreement to select umpire to establish actual cash value, and umpire did not err in applying “Broad Evidence Rule” to calculate actual cash value of said restaurant. Ct. of Appeals also found that defendant’s ultimate payment of 85 percent of policy’s coverage limit precluded any breach of contract or bad faith claim.
Federal 7th Circuit Court
Civil Court
Insurance