In Villas at Winding Ridge v. State Farm Fire & Cas. Co., No. 19-1731, 2019 WL 5853547 (7th Cir. Nov. 8, 2019) (case involved Indiana substantive law), a condominium association in Indiana sued for breach of contract and bad faith after an appraisal awarded 20% of the cost of hail damages on 13 buildings out of 33 at issue, and Winding Ridge's property carrier under a "Residential Community Association Policy," State Farm, paid that amount.
While the condominium's bad faith lawsuit was pending, it went ahead and paid $1.5 Million to have the roofs of all 33 buildings at issue repaired. One of the condominium's arguments was that State Farm was in bad faith for not paying that amount.
Not this time. "The fact that Winding Ridge independently replaced the shingles on all 33 buildings for $1.5 million while its claim was pending does not obligate State Farm under the policy or mean State Farm breached the policy." Villas at Winding Ridge, 2019 WL 5853547, at *5.
Parenthetically, Winding Ridge also contended in this litigation that State Farm's appraisal provision was void for ambiguity, i.e., that State Farm's appraisal provision was ambiguous and unenforceable. Winding Ridge was the one that demanded the appraisal in the first place, it will be recalled. You might say that they were for it until after the appraisal award was rendered, when they apparently turned against it. The Court held in this case that State Farm's appraisal provision was unambiguous and enforceable.
"Be sure you're right, then go ahead." Baby boomers will recall with fondness, perhaps, that that was the motto of Davey Crockett. Even after all these years, it is still a good motto to follow.
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