Michael

Michael v. Aetna Life & Casualty Insurance

Bad Law
106 Cal. Rptr. 2d 240·88 Cal. App. 4th 925
Court of Appeal of CaliforniaMay 30, 2001B131509California5,634 words

Opinion

Opinion

Kitching, J.

I. Introduction

An insurer appeals from an order vacating a fire insurance appraisal award because of alleged “corruption” in a party-selected appraiser pursuant to Code of Civil Procedure section 1286.2, subdivision (b). Insurance Code section 2071 requires appraisers to be “disinterested.” Since an appraisal agreement is subject to the California Arbitration Act (§ 1280 et seq.), we conclude that to be “disinterested,” a party-selected appraiser must make the disclosure that section 1281.9, subdivision (e) requires all arbitrators to make.

Among other requirements, section 1281.9, subdivision (e) requires an appraiser to disclose matters that would cause a person aware of the facts to reasonably entertain a doubt that the appraiser would be able to be impartial. We find that a failure to make this disclosure constitutes “corruption in any of the arbitrators” and therefore provides a ground for vacating an appraisal award under section 1286.2, subdivision (b). In this case, under section 1281.9, subdivision (e), the facts did not require disclosure by the party-selected appraiser. Therefore no “corruption” in the appraiser existed that required vacation of the…

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