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Contracts Keyed to Epstein
Meyer v. State Farm Fire & Cas. Co.
Citation:
85 Md.App. 83, 582 A.2d 275 (1990)Facts
Appellants purchased a fire insurance policy that contained a clause, which provides that if the company and the insured are unable to agree on the amount of loss, either one can demand that the amount be determined by appraisal. Upon such a demand, each party is obligated to select an appraisal. The policy further provides that no action shall be brought unless there has been compliance with the policy provisions. A fire occurred at their home, but unfortunately, they and the company were unable to agree on the amount of loss. The company, at some point, sought to invoke the appraisal process, but appellants instead filed suit for damages, contending that the appraisal provisions were invalid. They claimed that because the policy was a contract of adhesion and because they were actually unaware that it contained the appraisal provision, there was no effective waiver of their constitutional right.
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