SAMPLE–Litigation Edition: Capitol to Courthouse Headliners–July 2010

 

Following is a summary of Florida insurance-related litigation developments during June and early July 2010:

 

Third District Court Sides with Commercial Property Claimant in Breach of Contract Case Against Insurer

In the case of Medley Warehouses v. Scottsdale Insurance Company, Florida’s Third District Court of Appeal reversed the trial court’s final summary judgment in favor of Scottsdale Insurance, a Florida surplus lines insurer on June 30, 2010.   

The appeal involved a breach of contract case relating to Medley’s commercial property insurance policy and whether it was bound with provisions of replacement cost coverage prior to Medley’s filing of a substantial damage claim precipitated by Hurricane Wilma.

The crux of the appeal centered on whether Medley’s agent had remained the same after Scottsdale delivered the Medley’s on January 10, 2005. In support of its motion for summary judgment, Scottsdale argued that it had never issued the policy to Medley because Medley had failed to satisfy the condition precedent contained in Scottsdale’s binder. Scottsdale further argued that, because it had never issued the policy, the relationship between Medley and its agent was still in existence in July 2005, which coincided with the time it received instructions from a Medley employee to change the coverage to actual cash value.

The Third District Court found find Scottsdale’s argument without merit, and concluded that the trial court erred in finding that Medley had the same agent after the binder had expired and the policy was issued.

To view a complete summary of the case, click here.

 

First District Court of Appeal partially reverses wind/water/mobile home Citizens case

The First District Court of Appeal partially reversed a jury’s decision against Citizens Property Insurance Corporation on July 7, 2010 in a wind/water case involving the total loss of mobile home and its attendant structures in Milton, Florida.  To view details of the case, click on the headline above.

 

Fifth District Court grants Citizens Property Insurance prohibition from further trial court action in condo first-party bad faith case based on Citizens’ statutory immunity

In the Case of Citizens Property Insurance Corporation v. La Mer Condominium Association, the Fifth District Court of Appeal granted a writ of prohibition on July 2, 2010 to Citizens Property Insurance Corporation that prohibits the  trial court from taking any further action with respect to a first-party bad faith claim brought by La Mer Condominium Association.  The identical issue had been presented to the Fifth District Court in Citizens Property Insurance Corp. v. Garfinkel, 25 So.3d 62 (Fla. 5th DCA 2009) (rehearing denied January 15, 2010), which was pending at the time the petition was filed in this case. That case has now been decided, holding that Citizens is immune from first-party bad faith claims pursuant to sections 627.351(6)(r)1. and 624.155(1)(b)1., Florida Statutes. Id. As such, prohibition is also granted in this case for the reasons set forth in Garfinkel.

 

First District Court Upholds Florida Department of Financial Services Denial of Special Disability Trust Fund Refund

The First District Court of Appeal upheld a Florida Department of Financial Services Denial of a refund of over $6.6 million from the State’s Special Disability Trust Fund to the Florida Sheriffs Workers’ Compensation Self-Insurance Fund.

 

Ameriloss Public Adjuster State of Emergency Fee Cap Rule Challenge Dismissed by Florida Division of Administrative Hearings

In a June 29, 2010 Final Order, the Florida Division of Administrative Hearings (“DOAH”) dismissed an April 16, 2010 petition by Ameriloss Public Adjusting Corporation (“Ameriloss”) in which it had sought a formal hearing to determine whether Rule 69B-220.201(5)(d), Florida Administrative Code is ” . . . an invalid exercise of delegated legislative authority within the meaning of § 120.52(8), Florida Statutes.  The Rule imposes a retroactive and perpetual fee cap of 10 percent on public adjuster contracts relating to claims arising out of a declared State of Emergency in Florida.

Prior to the June 29 dismissal, the Florida Department of Financial Services had issued a February 16, 2010 Declaratory Statement providing answers to questions raised by Ameriloss in a November 19, 2009 petition referencing the aforementioned statute, Rule and applicability of the Rule to specific scenarios occurring both before and after the statute’s October 1, 2008 effective date.

 

 

 

Should you have any comments or questions, please contact Colodny Fass.