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With great power comes great responsibility: Ontario court gives primer on insurance appraisals


Introduction
The Ontario Insurance Act requires that every property insurance contract in the province gives the parties a right to require that disagreements about the amount of an insured loss be resolved via an appraisal process.(1) Other provinces insurance statutes contain similar provisions.(2) However, the principles applicable to appraisals are often not well understood.
Northbridge General Insurance Corp v Ashcroft Homes-Capital Hall Inc(3) seems to be the latest example of this. In this case, an Ontario judge terminated an appraisal and, in the course of doing so, reviewed the principles applicable to appraisals.
Facts
Ashcroft Homes involved a condominium tower built by Ashcroft that caught fire during construction. Northbridge, the insurer for the tower, exercised its right to an appraisal after the parties positions on the extent of the covered loss diverged dramatically. ....

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