United States District Court, E.D. Missouri, Southeastern Division
MEMORANDUM & ORDER
G. FLEISSIG UNITED STATES DISTRICT JUDGE
matter is before the Court on Plaintiffs' motion to
compel participation in the appraisal process (ECF No. 19)
and motion for protective order (ECF No. 21). Defendant State
Farm filed memoranda in opposition to both motions (ECF Nos.
23 and 24), and Plaintiffs filed replies (ECF No. 25 and 27).
For the reasons set forth below, the Court will grant the
motion to compel participation in the appraisal process and
deny the motion for protective order.
dispute concerns a loss claimed by Plaintiffs Taven
Apartments Limited Partnership, Taven Housing, LLC, and James
Schubiner (“Plaintiffs”) regarding real estate
located on 1008 Marler Road in the City of Caruthersville,
Pemiscot County, Missouri (hereinafter referred to as
“Taven Apartments”). Plaintiffs claim that they
purchased a policy of insurance from Defendant State Farm
Fire & Casualty Company (“State Farm”), which
insured against damage or destruction of Taven Apartments by
about May 6, 2015, Taven Apartments was damaged and destroyed
by a fire. Complaint (“Compl”), Doc. 1, at
¶¶ 5-7. Plaintiffs contend that they filed claims
and proofs of loss with State Farm for property damage to
Taven Apartments, as well as lost income caused by the fire.
Plaintiffs claim that State Farm failed to pay the amount
demanded by Plaintiffs for the loss and failed to participate
in the process of appraising the damaged property. State Farm
generally denied the allegations. Answer, Doc. 17, at
Farm concedes that the policy of insurance was in effect at
the time of the fire loss and that it has made payments to
Plaintiffs for “covered losses” under the policy.
State Farm contends that the structure built to replace Taven
Apartments is not a “like kind and quality” as
required under the policy. Specifically, the policy provides
the following with regard to loss payments by State Farm:
4. Except as provided in Paragraphs (b)
through (e) below, we will determine the
value of Covered Property as follows: a. We will:
(1) For loss covered by this policy, other than described in
Paragraph (2) below, at our option, either:
(a) Pay the value of lost or damaged property as determined
in the Valuation Condition shown in the applicable coverage
(b) Pay the cost of replacing or repairing the lost or
damaged property, plus any reduction in value of repaired
(c) Take all or part of the property at an agreed or
appraised value; or
(d) Repair, rebuild, or replace the property with other
property of like ...