Meyer v. State Farm Fire & Cas. Co.

Insureds (plaintiffs) held a hazard insurance policy from State Farm Fire & Cas. Co. (defendant) that required disputes over the amount of a covered loss to go through an appraisal process with multiple appraisers, rather than litigation. After suffering a covered loss and disputing State Farm's valuation, the insureds skipped the appraisal process and sued directly for damages, arguing the appraisal clause violated their state constitutional right to a jury trial and that they never knowingly waived that right because the policy was a contract of adhesion they had no real ability to negotiate. The lower court dismissed the suit, and the insureds appealed.