Greater New York Mutual Insurance Co. v. Galena at Wildspring Condominium Association

2022 IL App (2d) 210394 (Ill. App., 2022)

Words & Phrases

Pre Judgment Interest

Trial Judge

Bonnie M. Wheaton

Appellate Judge

McLaren

Holding

Pre-judgment interest became due 30 days after the final appraisal issued, not after the proof of loss was filed.

Fact Summary

GNY issued a property insurance policy to Galena, insuring a condominium complex consisting of 33 two-story condominium buildings. Galena notified GNY that certain components of the property had been damaged by a storm. On January 26, 2018, Galena submitted to GNY a signed sworn statement in proof of loss, valuing the loss and damage at $5,020,438.90. Galena demanded an appraisal under the terms of the policy, which was rejected by GNY.

During the ensuing litigation, Galena and GNY agreed to submit the dispute to appraisal and, in July 2020, executed a stipulation governing the scope of the appraisal. The stipulation provided: "GNY will, within 30 days of the appraisal award, pay the ACV awarded by the appraisal panel minus, deductibles and prior payments deposited or cashed by Galena...If, within one year of the appraisal award, Galena performs the repairs that are the subject of the ACV awarded by the panel, Galena may then make claim to GNY for the RCV of the award."

The policy also contained a loss payment provision, which provided: "We will pay for covered loss or damage to Covered Property within 30 days after we receive the sworn proof of loss, if...(1) We have reached agreement with you on the amount of loss; or (2) An appraisal award has been made."

According to GNY, interest would begin to accrue 30 days from February 16, 2021—the date of the final appraisal. Citing paragraph 5 of the stipulation and the policy's loss payment provision, GNY argued that the due date was, therefore, March 18, 2021. Galena reiterated its claim that 5% interest was due on the RCV starting at 30 days from Galena's filing of the proof of loss.

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