McGourty v. Pennsylvania Millers Mut. Ins. Co.

• Citation: 704 A.2d 663
• Parties: John McGOURTY, Appellee, v. PENNSYLVANIA MILLERS MUTUAL INSURANCE COMPANY, Appellant. . Filed
• Decision Date: 31 December 1997
• Court: Superior Court of Pennsylvania

Page 663

704 A.2d 663

John McGOURTY, Appellee, v. PENNSYLVANIA MILLERS MUTUAL INSURANCE COMPANY, Appellant.

Superior Court of Pennsylvania.

Filed Dec. 31, 1997.

Howard M. Levinson, Wilkes-Barre, for appellant.

Michael T. Toole, Wilkes-Barre, for appellee.

Before McEWEN, President Judge, and HUDOCK and SCHILLER, JJ.

PER CURIAM:

This is an appeal from the February 25, 1997, order removing the entire panel of appraisers previously selected and directing each party to select a new appraiser within ten days. Appellee has filed a motion to quash the appeal as interlocutory.

On April 24, 1996, Appellee's home, insured by Appellant, was damaged by fire. Because the parties were unable to agree on the value of the loss, Appellant demanded that they proceed under the appraisal clause of the insurance policy. After numerous unsuccessful attempts at empanelling three appraisers, the trial court entered the order at issue.

Both the appraisal and arbitration process are intended as alternatives to litigation whereby the parties submit the issues in dispute to an independent counsel for resolution. The only distinction between arbitration and appraisal is the scope of issues encompassed in each proceeding. An appraisal is limited to determining the amount of the loss with all other issues reserved for settlement by either negotiation or litigation, while arbitration considers all issues necessary for disposition of the entire controversy between the parties. Ice City, Inc. v. Ins. Co. of North America, 456 Pa. 210, 216 n. 12, 314 A.2d 236, 240 n. 12 (1974). For purposes of enforceability, there is no distinction between arbitration and appraisal. Ice City, 314 A.2d at 240; see also Boulevard Associates v. Seltzer Partnership, 445 Pa.Super. 10, 17-19, 664 A.2d 983, 987 (1995) (scope of judicial review of an appraisal conducted pursuant to a private agreement analogous to that used to review private agreement providing for common law arbitration). We find that an appraisal order is analogous to an arbitration order and will review it accordingly.

Appellant argues that the February 25 order is appealable as a collateral order pursuant to Rule 313 of the Pennsylvania Rules of Appellate Procedure. A collateral order is one that is "separable from and collateral to the main cause of action where the right involved is too important to be denied review and the question presented is such that if review is postponed until final judgment in the case, the claim will be irreparably lost." Pa.R.A.P. 313(b), 42 Pa.C.S.A. In order to qualify as a collateral order, all three factors set forth in Rule 313 must be satisfied. DiLucido v. Terminix Int'l., Inc., 450 Pa.Super. 393, 397-99, 676 A.2d 1237, 1239, alloc. den., 546 Pa. 655, 684 A.2d 557 (1996). The collateral order doctrine must be construed narrowly in order to "protect the integrity of the fundamental legal principle that only final orders may be appealed. To hold otherwise would...