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March 14, 2025
Insurance Appraisal is an Arbitration in Rhode Island

Appraisal Award Must be Rejected if Appraiser Has a Financial Interest in a Potential Award

Post 5019

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New England Property Services Group, LLC appealed from a January 23, 2024 order denying the plaintiff’s motion to reconsider a denial of the plaintiff’s petition to confirm an appraisal award. The Superior Court granted the defendant, Vermont Mutual Insurance Company’s (defendant),cross-petition to vacate the award based on partiality on the part of the plaintiff’s appraiser.

In New England Property Services Group, LLC v. Vermont Mutual Insurance Company, No. 2024-67-Appeal, Supreme Court of Rhode Island (March 10, 2025) the Supreme Court Applied state law.

FACTS

Brandy Hamel and Scott Parker (the insureds) made claim to Vermont Mutual for loss caused by wind damage to the insured’s property located in Greenville, Rhode Island. The insureds engaged plaintiff to complete the repairs at their home in exchange for the assignment of their insurance claim to plaintiff. The defendant processed the claimed loss and provided an estimate to plaintiff. The plaintiff disagreed with the estimate and invoked the appraisal process established in the insurance agreement.

THE APPRAISAL CLAUSE

The appraisal clause in the contract allows the determination of loss by submitting the dispute over the amount to a panel of three appraisers.

Steven Ceceri (Ceceri), the principal of plaintiff, was appointed by plaintiff as its appraiser for the dispute. The defendant appointed Vincent Cicci (Cicci) as its own appraiser. According to the terms of the appraisal clause, Ceceri and Cicci were to agree on a person to serve as appraisal umpire. The two men could not agree, and Felix Carlone (Carlone) was appointed as umpire by the Superior Court.

The appraisal concluded with an award signed by Ceceri and Carlone, with Cicci refusing to sign, according to defendant, because he believed that the award was not supported by the facts presented. Plaintiff filed a petition to confirm the appraisal award under Rhode Island’s Arbitration Act in the Superior Court. The defendant filed a cross-petition to vacate the award arguing that Ceceri was ineligible to serve as appraiser for plaintiff because of his financial interest in a potential award.

The Superior Court entered an order granting defendant’s cross-petition to vacate the appraisal award and denying plaintiff’s petition to confirm the appraisal award.

After defendant objected, the Superior Court denied plaintiff’s motion. The hearing justice determined that the omission of the term “disinterested” from the insurance contract did not negate the categorization of the appraisal process as an arbitration. Specifically, he declared that plaintiff “continuously promoted” the appraisal proceedings as arbitration throughout the process.

DISCUSSION

The plaintiff asserts that the public policy is efficient resolution of insurance disputes that have been served by the appraisal proceeding. The plaintiff further avers that Rhode Island has not universally equated appraisal with arbitration and that the Arbitration Act does not apply to this appraisal proceeding.

The Supreme Court concluded that it is well settled in New Hampshire that when the language of a statute is clear and unambiguous, the Supreme Court must interpret the statute literally and must give the words of the statute their plain and ordinary meanings.

The Arbitration Act has no requirement that the arbitrators be disinterested; rather, they are only prohibited from engaging in partiality or corruption. Since the Plaintiff, sitting as an appraiser, had a financial interest in the outcome he was engaging in partiality or corruption.

The Supreme Court concluded that plaintiff’s actions revealed his willingness to use every judicial avenue available to derive an unfair advantage if it were permitted to now claim that the appraisal proceeding is not arbitration after previously attempting to confirm the appraisal award in the Superior Court under that same theory. The Supreme Court affirmed the order of the Superior Court.

ZALMA OPINION

The New York Standard Fire Insurance Policy has been the foundation for insurance policies insuring against the risk of lost to real or personal property and, followed and adopted across the country. It, and almost all property policies, contain an appraisal clause as a prompt means of conflict resolution. In this case, one of the appraisers had an assignment of the insured’s claims against the insurer and was interested in the result of the appraisal. The Supreme Court found that the appraisal is subject to New Hampshire’s Arbitration Act as an arbitration and affirmed the Superior Court because of the plaintiff’s appraiser’s interest in the proceeds.

(c) 2025 Barry Zalma & ClaimSchool, Inc.

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00:08:39
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Post 5196

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You Plead Guilty You Must Accept the Sentence

In Commonwealth Of Pennsylvania v. Mark D. Redfield, No. 20 WDA 2025, No. J-S24010-25, Superior Court of Pennsylvania (September 19, 2025) the appellate court reviewed the case of Mark D. Redfield, who pleaded guilty to third-degree murder for killing April Dunkle with malice using a rifle.

Affirmation of Sentence:

The sentencing court’s judgment was affirmed, and jurisdiction was relinquished, concluding no abuse of discretion occurred.

Reasonable Inference on Trigger Pulling:

The sentencing court reasonably inferred from the guilty plea facts that the appellant pulled the trigger causing the victim’s death, an inference supported by the record and consistent with the plea.

Guilty Plea Facts:

The appellant admitted during the plea hearing...

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September 25, 2025
Prelitigation Communications Privileged

The Judicial Proceedings Privilege
Post 5196

Posted on September 25, 2025 by Barry Zalma

See the full video at and at

Judicial Proceeding Privilege Limits Litigation

In David Camp, and Laura Beth Waller v. Professional Employee Services, d/b/a Insurance Branch, and Brendan Cassity, CIVIL No. 24-3568 (RJL), United States District Court, District of Columbia (September 22, 2025) a defamation lawsuit filed by David Camp and Laura Beth Waller against Insurance Branch and Brendon Cassity alleging libel based on statements made in a letter accusing them of mishandling funds and demanding refunds and investigations.

The court examined whether the judicial proceedings privilege applieD to bar the defamation claims.

Case background:

Plaintiffs Camp and Waller, executives of NOSSCR and its Foundation, sued defendants Insurance Branch and Cassity over a letter alleging financial misconduct and demanding refunds and audits. The letter ...

00:07:56
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September 24, 2025
Untrue Application for Insurance Voids Policy

Misrepresentation or Concealment of a Material Fact Supports Rescission

Post 5195

Don’t Lie to Your Insurance Company

See the full video at and at https://rumble.com/v6zefq8-untrue-application-for-insurance-voids-policy.html and at https://zalma.com/blog plus more than 5150 posts.

In Imani Page v. Progressive Marathon Insurance Company, No. 370765, Court of Appeals of Michigan (September 22, 2025) because defendant successfully established fraud in the procurement, and requested rescission, the Court of Appeals concluded that the Defendant was entitled to rescind the policy and declare it void ab initio.

FACTS

Plaintiff's Application:

Plaintiff applied for an insurance policy with the defendant, indicating that the primary use of her SUV would be for "Pleasure/Personal" purposes.

Misrepresentation:

Plaintiff misrepresented that she would not use the SUV for food delivery, but records show she was compensated for delivering food.

Accident:

Plaintiff's SUV was involved in an accident on August ...

00:07:48
September 09, 2025
The Dishonest Chiropractor/Physician

How a Need for Profit Led Health Care Providers to Crime
Post 5185
Posted on September 8, 2025 by Barry Zalma

See the full video at https://lnkd.in/gePN7rjm and at https://lnkd.in/gzPwr-9q

This is a Fictionalized True Crime Story of Insurance Fraud from an Expert who explains why Insurance Fraud is a “Heads I Win, Tails You Lose” situation for Insurers.

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See the full video at and at

This is a Fictionalized True Crime Story of Insurance Fraud from an Expert who explains why Insurance Fraud is a “Heads I Win, Tails You Lose” situation for Insurers. The story is designed to help to Understand How Insurance Fraud in America is Costing Everyone who Buys Insurance Thousands of Dollars Every year and Why Insurance Fraud is Safer and More Profitable for the ­­­Perpetrators than any Other Crime.

How Elderly Doctors Fund their ...

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September 08, 2025
The Dishonest Chiropractor/Physician

How a Need for Profit Led Health Care Providers to Crime
Post 5185
Posted on September 8, 2025 by Barry Zalma

See the full video at https://lnkd.in/gePN7rjm and at https://lnkd.in/gzPwr-9q

This is a Fictionalized True Crime Story of Insurance Fraud from an Expert who explains why Insurance Fraud is a “Heads I Win, Tails You Lose” situation for Insurers.

The Dishonest Chiropractor/Physician

How a Need for Profit Led Health Care Providers to Crime

See the full video at and at

This is a Fictionalized True Crime Story of Insurance Fraud from an Expert who explains why Insurance Fraud is a “Heads I Win, Tails You Lose” situation for Insurers. The story is designed to help to Understand How Insurance Fraud in America is Costing Everyone who Buys Insurance Thousands of Dollars Every year and Why Insurance Fraud is Safer and More Profitable for the ­­­Perpetrators than any Other Crime.

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September 03, 2025

Barry Zalma: Insurance Claims Expert Witness
Posted on September 3, 2025 by Barry Zalma
The Need for a Claims Handling Expert to Defend or Prove a Tort of Bad Faith Suit

© 2025 Barry Zalma, Esq., CFE

When I finished my three year enlistment in the US Army as a Special Agent of US Army Intelligence in 1967, I sought employment where I could use the investigative skills I learned in the Army. After some searching I was hired as a claims trainee by the Fireman’s Fund American Insurance Company. For five years, while attending law school at night while working full time as an insurance adjuster I became familiar with every aspect of the commercial insurance industry.

On January 2, 1972 I was admitted to the California Bar. I practiced law, specializing in insurance claims, insurance coverage and defense of claims against people insured and defense of insurance companies sued for breach of contract and breach of the implied covenant of good faith and fair dealing. After 45 years as an active lawyer, I asked that my license to practice law be declared inactive ...

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