Bias Allegations Unfounded: Appraiser Wins in Court
In this issue:
- FEMA’s 50% Rule: What you need to know
- Bias Allegations Unfounded: Appraiser Wins in Court
- 2026 Appraisal Institute Volunteers: Don’t forget to complete the Leadership Resource Registry
Insights
Court Rules in Favor of Appraiser in High-Profile Valuation Bias Case
In a significant ruling for the appraisal profession, the U.S. District Court for the District of Maryland granted summary judgement in favor of the appraiser on the claim of racial discrimination. The Connolly et al. v. Lanham et al. case had drawn national attention after homeowners Nathan Connolly and Shani Mott alleged racial discrimination in a 2021 appraisal of their Baltimore home, asserting that the valuation was low due to their race.
Notably, the case attracted the attention of the U.S. Department of Justice under the previous administration, which filed a statement of interest in support of the Plaintiffs’ position—an unusual intervention that signaled heightened federal scrutiny of alleged appraisal bias.
The court granted summary judgment to the Defendants, appraiser Shane Lanham and 20/20 Valuations, LLC, citing a lack of evidence that the appraisal was racially motivated. It also ruled in favor of the Plaintiffs on the appraiser’s defamation counterclaims, finding their public statements were protected under Maryland’s fair reporting privilege.
In reviewing the discrimination claims, the court applied the McDonnell Douglas burden-shifting framework and found that although the Plaintiffs made a prima facie case, they failed to demonstrate that the appraiser’s explanation—centered on location, comparables, and professional methodology—was a pretext for discrimination. The Plaintiffs’ expert, a sociologist rather than a qualified appraiser, was partially excluded from testifying on appraisal-specific matters, a key factor in the court’s ruling.
“This decision reinforces the importance of sound appraisal methodology and the high burden of proof required to establish discriminatory intent,” said Scott DiBiasio, Director of Government Affairs for the Appraisal Institute.
This was the first fully adjudicated case against an appraiser accused of appraisal bias. After discovery established the facts, the judge correctly applied the law, ruling in favor of the appraiser. This precedent-setting outcome should discourage future baseless claims against appraisers.
“In our view, the growing number of valuation bias claims that have been dismissed or resolved in favor of the appraiser may begin to serve as a deterrent to the filing of similar claims that lack sufficient factual or expert support,” said DiBiasio.
The Appraisal Institute continues to monitor litigation and regulatory developments involving allegations of valuation bias and will keep members informed of key rulings and policy implications.
New Learning Opportunities for All Appraisers
The Appraisal Institute has launched three dynamic new courses—each tailored to help appraisers across practice areas respond to changing client needs, regulatory requirements, and complex property types.
Sharpen Your Residential Reporting with the New URAR Companion Courses
Whether you’re a residential appraiser or a generalist who occasionally accepts residential assignments, staying current with the redesigned Uniform Residential Appraisal Report (URAR) is essential. These short-format programs offer practical tools and flexibility for learners and chapters alike—and can be scheduled together for a full-day session or delivered after a chapter meeting.
Reporting Market Analysis and Better Understanding the New URAR
4-Hour Classroom Seminar Premieres
- Friday, August 1, 2025 — Utah Chapter
- Thursday, August 14, 2025 — Valuation Expo, Las Vegas
- Instructor: Jared Preisler, SRA, AI-RRS
Supporting Adjustment Results and Reporting the Sales Comparison Approach in the New URAR
3-Hour Classroom Seminar Premieres
- Friday, August 1, 2025 — Utah Chapter
- Thursday, August 14, 2025 — Valuation Expo, Las Vegas
- Instructor: Jared Preisler, SRA, AI-RRS
These seminars help ensure your reports align with GSE expectations, improve communication with users of appraisal services and reinforce critical thinking around market support and comparables.
Specialized Knowledge for Complex Assignments:
Commercial and residential appraisers alike are increasingly asked to value properties with business components—and restaurant properties can present some of the most nuanced challenges. Appraising Restaurants is a 7-hour on-demand seminar led by nationally recognized appraiser and former restaurant operator Bradley R. Carter, MAI. Drawing from the Appraisal Institute’s award-winning text, the course provides practical guidance for valuing:
- Franchise and standalone restaurants
- Properties with going concern components
- Assets requiring value allocation between real estate, personal property, and intangible business value
This course is ideal for appraisers who serve commercial, mixed-use, or special-use property markets—or who want to broaden their scope of work with confidence.
Whether you specialize in residential, commercial, or complex property types, these new offerings provide valuable insight, applied strategies, and a competitive edge in today’s evolving appraisal landscape.
Your Benefits
LIA Administrators and Insurance Services is the endorsed provider for Professional Liability (E&O) Insurance, Commercial General Liability Insurance, and Cyber Liability Insurance for Appraisal Institute members. LIA is the oldest active program for appraisers and multidisciplined real estate professionals nationwide, insuring more than 20,000 valuation professionals. LIA’s National Claims Counsel is headed by Claudia Gaglione of Gaglione, Dolan & Kaplan, with more than 8,000 claims handled. LIA also offers education in risk management with articles, claim alerts, and liability prevention seminars.
Trending Topics Thursdays:
Sign up for our next free webinar
Understanding FEMA’s 50% Rule – What Appraisers and Assessors Need to Know
July 31, 2025, 12 PM ET
The Appraisal Institute and the International Association of Assessing Officers (IAAO) are cohosting a timely webinar on FEMA’s 50 Percent Rule—a key provision that affects property redevelopment in the wake of major disasters.
In light of these events, our Trending Topics Thursday webinar, Understanding FEMA’s 50 Percent Rule, co-hosted with IAAO, has been rescheduled to Thursday, July 31 to give affected professionals and partners time to focus on urgent needs. We appreciate your understanding and continued support.
This session is designed to raise awareness among professional appraisers and assessors about how FEMA defines “substantial improvement” and “substantial damage” and how those determinations impact rebuilding in Special Flood Hazard Areas. Attendees will gain insight into valuation methodologies used in the process, the role of local officials, and how appraisal and assessment professionals can contribute to sound, compliant recovery efforts.
Panelists:
- Ray Carroll, MAI, SRA, CFM, Carroll & Carroll Appraisers and Consultants
- Mike Twitty, MAI, Pinellas County Property Appraiser (FL Assessor)
- Moderator: Michael Acquaro-Mignogna, MAI, SRA, AI-GRS, Appraisal Institute President-Elect
Advocacy Updates
Oregon Becomes 42nd State to Become PAREA-Ready
The Appraisal Institute commends the Oregon Appraiser Certification and Licensure Board (ACLB) for adopting the Practical Applications of Real Estate Appraisal (PAREA) as an accepted pathway to licensure. As the 42nd state to become PAREA-ready, Oregon has taken a transformative step toward modernizing appraiser licensing and expanding access to the profession.
We are proud to have contributed input and feedback to the ACLB in crafting these innovative rules. By implementing this progressive approach to experience, Oregon is promoting accessible, high-quality training for aspiring appraisers. With a 100% first-time pass rate to date in our Licensed Residential PAREA program, the results clearly demonstrate PAREA’s ability to prepare competent, well-qualified professionals to meet the demands of today’s valuation landscape.
To learn more about AI PAREA and how to get started, visit AI PAREA.
Real Estate Horizons
Stay updated and check out links to the latest major real estate industry stories!
More Opportunities to Learn
Search the latest educational offerings! Find National and Chapter-sponsored classroom, synchronous, and online opportunities.
Your Community
Submit your 2026 volunteer interest NOW!
Still undecided about expressing interest? It’s not too late! Volunteering has real benefits. According to research, 92% of volunteers say it improves their professional skills, and 76% report it has helped expand their network. Most importantly, it’s a rewarding way to give back to the profession!
If you’d like to be considered for a seat on the 2026 Appraisal Institute Committee complete the Leadership Resource Registry (LRR) by August 31, 2025 – even if you’re currently serving and your term ends this year.
- Step 1: Log in and click “+Add Volunteer Selections” to indicate where you’d like to serve (National, Region, or Chapter)
- Step 2: Highlight your strengths using the “Additional Information” section. Let us know where you want to serve and how you can best contribute to the future of AI.
- Step 3: Update your member profile, including demographic details, to help us build diverse and well-rounded leadership teams.
Want to serve closer to home?
Explore leadership opportunities in your local chapter! Visit our new Chapter Directory to contact your chapter and learn how you can get involved and make a difference locally.
Y.T. and Louise Lee Lum Award
The Appraisal Institute Education and Relief Foundation (AIERF) is seeking nominations from AI members for the Y.T. and Louise Lee Lum Award.
The Y.T. and Louise Lee Lum Award recognizes one or more worthy individuals who have made a distinguished contribution to the appraisal profession during the immediately preceding year. The Y.T. and Louise Lee Lum Award is open to both Appraisal Institute members as well as those who do not belong to the Appraisal Institute. Nominators should provide a letter of recommendation and brief biography of the nominee to aierf@appraisalinsitute.org by July 31. For more information on AIERF and the awards, please visit the AIERF website.
Until Next week
Team Appraisal Institute
