In Citizens Property Insurance Corp. v. Perdido Sun Condominium Ass’n, the Florida Supreme Court was asked to decide “whether the Florida Legislature intended … [for] a state-created entity that provided property insurance to be liable for statutory first-party bad faith claims as an exception to its statutory immunity from suit.” After prevailing in a breach of contract action against Citizens, Perdido Sun sued Citizens for bad faith under Florida’s Section 624.155(1). Citizens sought to dismiss the bad faith complaint based upon its statutory immunity. …
Continue ReadingSearch Results for: florida
Florida Court of Appeals Permits Post-Loss Assignment of Benefits to Third Party
In Accident Cleaners, Inc. v. Universal Insurance Co., 2015 SL 1609973 (Fla. Ct.App. April 10, 2015) the Florida Court of Appeals, Fifth District held the assignee of benefits under an insurance policy was not required to have an insurable interest in the insured property at the time of loss. The court further held that so long as the assignor had an insurable interest in the insured property at the time of the loss, such insurable interest is imputed to the assignee.
The assignee was …
Continue ReadingFlorida Court Refuses To Enforce Employment Related Practices Exclusion Against Defamation Claim Under Coverage B
In Khatib v. Old Dominion Insurance Co., 2014 Fla. App. LEXIS 19843 (Fla. DCA 1st Dist. Dec. 5, 2014), the Florida Court of Appeal held that Old Dominion Insurance Company (Old Dominion) did not have a duty to defend its insureds against a defamation claim. As background, the insureds, directors and officers First Coast Cardiovascular Institute (FCCI), filed suit against Dr. Majdi Aschi for fraud, negligently supplying false information, breach of contract, reformation, unjust enrichment, breach of fiduciary duty, and conspiracy. Dr. Aschi denied …
Continue ReadingFlorida Court Finds Underlying Tort Claimants Are Not Necessary Parties to DJ Action In Priority of Coverage Dispute
The plaintiff, Northern Assurance Company of America, sought a declaration as to the priority of coverage between its policy and that of the defendant, Auto-Owners, with respect to the underlying action. In the underlying action, Ray Lequerique alleged that he was injured while visiting David Giannone, Inc. (Giannone), a property owned by the Anthony Family Limited Partnership (Anthony) and leased to the Aqua Toy Store, Inc. (Aqua). Aqua Toy Store was insured by the plaintiff Northern Assurance. Giannone was insured by the defendant Auto-Owners under …
Continue ReadingFlorida and Alabama Governors Join Fight Against Flood Insurance Rate Hikes
The Governors of Florida and Alabama filed an Amicus brief in a lawsuit brought by Mississippi against the federal government over flood insurance rate hikes. Mississippi filed suit just before rate hikes took effect in accordance with the Federal Emergency Management Agency’s Biggert-Waters Flood Insurance Reform Act.
In 2012, President Barack Obama signed the Biggert-Waters Flood Insurance Reform Act into law. This act was adopted to fund the federal government’s flood insurance program which is heavily in debt. It requires yearly rate hikes for those …
Continue ReadingDismissal of Class Action Against Title Insurer Upheld; Duty Alleged By Appellants’ Have No Support in Florida Law
Bleich et al. v. Chicago Title Insurance Co.,
Third District Court of Appeal, Florida; Case number 3D12-1261
Plaintiffs Arthur Bleich and Gloris Elder (plaintiffs) appealed an award of summary judgment in favor of the defendant, Chicago Title Insurance Company (Chicago Title), dismissing the underlying class action lawsuit against Chicago Title for claims of overcharging for title insurance. The lower court granted summary judgment on the basis that Florida law did not require Chicago Title to search for homeowners’ prior insurance policies to see if they …
Florida Widens Insurer’s Liability for Defense Costs
An intermediate appeals court in Florida held that an insurer’s decision to refuse separate independent counsel for an additional insured (AI) was wrong and awarded the AI indemnification for attorney’s fees and costs for independent counsel. In University of Miami v. Great American Assurance Company, etc., (No. 3D09-2010, Florida Third District Court of Appeal), the insured ran a summer swim camp on the AI’s campus. The claimant sued both entities for lack of supervision, claiming bodily injuries from being pulled unresponsive from the …
Continue ReadingFlorida Supreme Court’s Bad Faith Ruling is Bad News for Policyholders
QBE Ins. Corp. v. Chalfonte Condo. Apt. Ass’n, Inc.
(Fla. May 31, 2012)
The Florida Supreme Court ruled last week that there is no common law first-party bad faith cause of action against an insurer and, therefore, that a policyholder may only pursue a bad-faith action in accordance with Florida statutes.
The action arose from property damage caused by Hurricane Wilma in 2005. The policyholder, Chalfonte, sustained significant damage and filed a claim with its property insured, QBE. Dissatisfied with QBE’s handling of the claim, …
Continue ReadingFLORIDA JURY AWARDS GLORIA ESTEFAN’S HOTEL CO. $ 6.7 MILLION FOR HURRICANE DAMAGE
Pin-Pon Corporation v. Landmark American Insurance Co. , case number 2009 0320 CA 03, consolidated with Pin-Pon Corporation v. Lexington Insurance Co., case number 31 2009 CA 01 2244, May 3, 2012 (Indian River County, FL)
Lexington Insurance Co. and Landmark American Insurance Co., were found by a Florida state jury to be liable to Gloria Estefan’s Pin-Pon Corp. in the amount of $6.7 million for failing to provide coverage for hurricane damage.
The insurers had made some payments, but the jury found that …
Continue ReadingFlorida Court Of Appeals Affirms Dismissal Of Complaint Against Insurer For Denial Of Professional Liability Claim, Despite Default By Insurer.
Appel et. al. v. Lexington Ins. Co.
(Florida Court of Appeals, February 26, 2010)
Appellants challenged the dismissal of their complaint and summary judgment in favor of insurer where the trial court held that the complaint failed to state a case of action even after the insurer defaulted. The appellants, a group of creditors, fell victim to a Ponzi scheme when they invested in a company known as SOS Industries. The creditors filed suit against SOS and its two directors for breaching …
Continue Reading