Insurance – Fire – Loss Compensation – Motel – Valuation – Appraisal Process

Patel v. Scottsdale Insurance Co. (Lawyers Weekly No. 12-07-0697, 18 pp.) (Sam Ervin IV, J.) Appealed from Wake County Superior Court. (Paul G. Gessner, J.) N.C. App. Full-text opinion.

Holding: The parties’ insurance policy gives the defendant-insurer the option of paying either fair market value or replacement value for the plaintiff’s hotel, which was destroyed by fire. However, instead of granting summary judgment for the insurer, the trial court should have stayed this action until the parties completed the appraisal process set out in the policy.

We reverse summary judgment for the insurer and remand for further proceedings.