According to HailSolve’s complaint, the payments were insufficient to repair the damage, causing the firm to invoke the policy’s appraisal clause.
In February 2020, an appraisal panel granted an award to HailSolve of over $4.46 million dollars.
Auto-Owners Mutual paid HailSolve approximately $750,000 by March but refused to pay beyond that until it investigated whether it owed the remaining balance.
In July 2020, HailSolve filed its lawsuit against Auto-Owners Mutual after the insurer refused to agree to a deadline for negotiations.
HailSolve accused the insurer of concocting reasons to evade full payment of the appraisal award.
HailSolve also said the insurer was operating in bad faith, claiming Auto-Owners Mutual had no good cause or justifiable reason not to make the remaining payment.
HailSolve was asking the court to order Auto-Owners Mutual to cover the full amount of the appraisal award and punitive damages.
In August, Auto-Owners Mutual responded to the complaint by asking the court to dismiss the complaint for failure to state a claim.
