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Minnesota Supreme Court reinstates dismissal of State Farm appraisal suit
The court found the filings were effectively a deadline-planning placeholder because State Farm had not yet refused appraisal within the policy’s 20-day response window.
Minnesota’s highest court reinstated the dismissal of a lawsuit accusing State Farm of improperly handling an appraisal demand tied to storm damage claims on three apartment buildings and associated garages in Rice County, Minnesota, according to Insurance Business.
The property owners, CVC Investments and MJC Investments, reported storms damaged structures on April 12 and May 19, 2022. Their policy included a two-year deadline to sue after the loss, and it also provided that either side could demand appraisal, with each party required to notify the other of the selected appraiser within 20 days after receiving a written appraisal demand.
CVC filed suit on April 12, 2024, four days before the two-year deadline after its public adjuster filed storm claim paperwork on April 8, 2024 and it demanded appraisal on April 10. The Minnesota Supreme Court held that merely demanding appraisal does not, by itself, establish that the parties are in actual disagreement, and that State Farm’s lack of an immediate yes was not the same as a refusal.
The court also rejected the breach-of-contract claim, saying it depended on what State Farm might do later rather than a live dispute a court could decide. In reinstating the dismissal, the justices described the case as a “placeholder lawsuit,” while stopping short of ruling that insurers can ignore claims indefinitely.