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 …

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Insured Can’t Claim Damages in Proof of Loss Were “Puffed” Up to Avoid Federal Jurisdiction: Federal Court Deems Damages Demand in Sworn Proof of Loss Submitted to Insurer More Credible than Complaint’s Unsworn Estimate

On October 10, 2018, a Florida federal court ruled that an insured’s precise damages estimate, set out in an exhibit to his complaint against his insurer, of $73,963.19, was less credible than his pre-suit demand in his proof of loss form of $100,709.34.

The insured, Roger Ulloa, sued his insurer, Integon National Insurance Company, alleging it failed to fully pay his property damage claim in the wake of Hurricane Irma. Integon removed the case to federal court on the basis that Ulloa’s pre-suit estimate …

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