I hope you are doing well. I have a client who invoked appraisal when we could not reach an agreement with the insured's carrier, State Farm. The appraisal process led to an award of an amount greater than $6,539.95. State Farm had the award revised, as the signed award accidentally led to an overage on overhead and profit for a certain line item. Once the award was revised, State Farm issued a $6,539.95 appraisal payment.

Subsequently, the insured's appraiser noted another error on the signed award and proposed a revision that led to a revised award being signed by the insured's appraiser and by the umpire. The revised award increased the scope of work via the addition of two line items allowing for the removal and replacement of the insured's air handlers- the revised award, if paid, would lead to a supplemental $5,932.36 payment.

State Farm is asserting that it does not owe for the $5,932.36 revised award payment via State Farm's following statement: