Appraisal Appropriate Despite Pending Coverage Issues

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Attorney Tred R. Eyerly analyzes DC Plastic Products Corp. v. Westchester Surplus Lines Ins. Co.

August 16, 2021
Tred R. Eyerly - Insurance Law Hawaii

The court granted the insured's motion for partial summary judgment, allowing an appraisal to go forward even with outstanding coverage issues in dispute. DC Plastic Products Corp. v. Westchester Surplus Lines Ins. Co., 2021 U,.S. Dist. LEXIS 95908 (D. N.J. May 19, 2021).

DC Plastic's property was damaged by Superstorm Sandy in October 2012. Claims submitted to Westchester resulted in a payment of $951,102.89 to DC Plastic. The parties disagreed on whether further payments were due. In 2017, DC Plastic sued Westchester for additional payments. DC Plastic moved to compel an appraisal for its claims, requesting that the court appoint an umpire for the appraisal process. Westchester cross-moved to dismiss the case in its entirety.

DC Plastic's complaint asked that the court appoint an umpire. The policy stated if the parties could not agree on the amount of loss, each party would select an appraiser, who would then agree upon an umpire. If they could not agree, either party could request the court to appoint the umpire. Therefore, the court was authorised to select the umpire here.

Mr. Eyerly may be contacted at


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