Law360 reported on a Minnesota federal court case involving a legal dispute between the Spinnaker Cove Clubhomes II townhome association and Country Mutual Insurance Co. over a $2.7 million appraisal award for 2022 storm damage repairs.
The association, represented by Hellmuth & Johnson attorneys, Brenda Sauro and Brock Alton, is seeking summary judgment, arguing that Country Mutual has no legal basis to withhold payment of the award since hail damage repairs to their Minnesota property have been completed. The central issue involves whether the association satisfied an “actual spend” provision in their insurance policy. Spinnaker Cove contends they met this requirement by incurring valid debt to their contractor, Capital Construction LLC, who has been waiting over two years for payment.
After initial disagreements over the loss amount, scope, and cause, an appraisal panel determined in May 2023 that the actual cash value exceeded $1.9 million and the replacement cost value surpassed $2.7 million. With prior payments of approximately $1.1 million and accounting for deductibles, the remaining balance is $839,438, plus over $171,000 in post-judgment interest.
For complete details on this insurance coverage dispute, please read the full Law360 article.