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March 18, 2020 Commercial General Liability / Duty to Defend

Eleventh Circuit Upholds Florida’s Strict Interpretation of Eight Corners Rule in Stabbing Case

In Mt. Hawley Ins. Co. v. Roebuck, the liability insurer for the owners of a Florida outdoor shopping mall sought to avoid coverage in connection with a stabbing that occurred at the mall based on the insureds’ failure to comply with conditions precedent to coverage. The Eleventh Circuit, however, in agreement with the district court, found that because the facts extrinsic to complaint that were necessary to establish the conditions’ application were in dispute, the insurer owed a duty to defend.

Mt. Hawley …

February 20, 2020 Punitive Damages

No Liability Coverage for Vicariously Liable Punitive Damages in Florida

The Southern District of Florida issued a ruling favorable to insurers in interpreting whether punitive damages are insurable in Florida–even when awarded for vicariously liable acts.

The case, Ranger Constr. Indus., Inc. v. Allied World Nat’l Assurance Co., No. 17-81226-KAM (S.D. Fla. Dec. 23, 2019), was an insurance coverage dispute arising over an excess policy issued by Allied World to the plaintiff. The policyholder had been hired for a construction project involving building a highway, and various subcontractors were ultimately hired. One such subcontractor’s …

November 26, 2019 General / Uncategorized

Florida Court Requires Plaintiff to Plead More Facts About a Cause of Loss

The U.S. District Court for the Middle District of Florida dismissed a property insurance case after holding that ambiguous, non-specific pleading of a cause of loss is not enough. Causation is often a focus in property insurance cases. The exact cause of a particular loss will determine if the loss is covered or excluded under the insurance policy—meaning whether a plaintiff-insured will recover from their insurer. However, in state and federal courts, plaintiffs often get by with pleading merely that “a covered loss occurred during …

November 19, 2019 General / Uncategorized

Florida Bridge Collapse Resolution Offers Workaround for Multiple Claimant Scenarios

A recent bankruptcy plan filed by Munilla Construction Management (MCM)–the general contractor for the failed pedestrian bridge at Florida International University (FIU)–paves the way for judicially recognized interpleader-type scenarios allowing insurers to resolve multiple-claimant incidents where there may be insufficient policy limits. On November 15, 2018, the Southern District of Florida Bankruptcy Court agreed to expedite a process that would allow victims of the pedestrian bridge collapse to start receiving compensation payouts following the creation of a victim’s fund.

By way of background, a pedestrian …

July 30, 2019 Uncategorized

Florida’s Assignment of Benefits Reform Bill Becomes Law Ahead of Peak Hurricane Season

Florida’s new Assignment of Benefits (AOB) reform bill became law on July 1, 2019, a short time ahead of the peak of this year’s hurricane season. Time will tell if it results in the amelioration of the AOB litigation epidemic, fueled by Florida’s Attorney’s Fee Statute Section 627.428, awarding attorney’s fees to prevailing assignees in insurance disputes. The attorney’s fee statute is credited with having incentivized Florida contractors to litigate even minor differences[1] with insurers over repair work performed or proposed for insureds. Legal …

May 1, 2019 Duty to Defend

Florida Appellate Court Narrows Exception to Four Corners Rule

The general rule for determining whether a duty to defend exists for a particular claim is easily stated. If the allegations against the insured fall within the scope of coverage afforded by a liability policy, then the insurer has a duty to defend its insured. This general rule is commonly referred to as the four corners rule.

However, insurers frequently face a dilemma in determining whether they have a duty to defend where the allegations in a tendered suit arguably fall within the scope of coverage under …

November 6, 2018 Occurrence / Policy Conditions, Considerations, Construction, and Formation

Florida’s Statutory Sovereign Immunity Language Inserted Into Any Government Liability Policy Takes Precedence Over the Policy’s Definition of “Occurrence”

In Florida, as in most jurisdictions, government agencies may be subject to liability for tortious acts, with the recovery limit capped by law. A recent decision, State of Florida v. Barnett, explores the recent conflict regarding the limit of recovery against a state agency for an “occurrence” involving multiple claimants.

Section 768.28(5), Florida Statutes (2010), states in relevant part as follows:

Neither the state nor its agencies or subdivisions shall be liable to pay a claim or a judgment by any one person which exceeds …

August 21, 2018 First Party Property

A Primer On Appraisal in Florida First-Party Property Damage Claims

In the wake of Hurricane Irma and other recent natural disasters, Florida courts have weighed in on one of the most important tools for resolution of first-party property damage claims: appraisal. In this post, we will address multiple appraisal issues and how courts have ruled recently on those issues.

Failure to Timely Invoke Appraisal May Constitute Waiver

In Versailles Sur La Mer Condominium Assoc., Inc. v. Lexington Ins. Co., 2018 WL 3827154 (M.D. Fla. Jul. 24, 2018) the insured, a condominium association, submitted a …

March 29, 2018 First Party Property

No Attorney’s Fees for Insured in Suit Relating to Selection of an Umpire for Appraisal for Florida First-Party Property Claims

In a recent first-party coverage claim, an insurer invoked its homeowner’s policy’s appraisal provision pre-suit when the parties could not agree on the scope of loss. The appraisal provision required both parties to select an appraiser, who were in turn required to agree mutually upon a neutral umpire for appraisal. The policy’s appraisal provision stated further that in the event the appraisers could not agree upon a neutral umpire, either party could initiate a legal action to request that the court appoint an umpire. When …

September 3, 2015 Bad Faith and Extra-Contractual Liability

New Law and a New Trial: Eleventh Circuit Overturns Florida Court Judgment Against GEICO in Bad Faith Lawsuit

On Wednesday, August 19, 2015 the Eleventh Circuit issued a significant ruling that allows evidence to be introduced at trial regarding previous decisions in that litigation, as well as changes in coverage law. In doing so, it vacated a $5 million bad faith judgment against GEICO General Insurance Co. (GEICO) from the U.S. District Court for the Southern District of Florida.

The lawsuit arises out of an automobile accident that occurred in 2006. The plaintiff represented the estate of a woman killed in that crash …