Florida Property Insurance Claims Mediation Statute Means What it Says.

   Florida Statute Section 627.7015(7). entitled "Alternative Procedure for Resolution of Disputed Property Insurance Claims," requires notice by certain Property Insurance Companies to "a first-party claimant of its right to participate in the mediation program under this section".  The Statute mandates that failure to provide the statutorily required notice means that the Property Insurance Company, which includes certain Homeowners Insurance Companies, cannot require an Appraisal. 

   The Statute means what it says, according to the only Judge found in Florida to have construed the Statute to date.  "Thus, the statute states that if an insurer fails to give notice of the right to mediation, or the insurer requests the mediation and one of the parties rejects its outcome, the insurer loses its right to invoke the appraisal provision of the insurance contract."  QBE Insurance Corp. v. Dome Condominium Ass'n, Download QBE Insurance Corp. v. Dome Condominium Ass'n (S.D. Fla. Case No. 08.20906, Order on Pretrial Conference, Filed 09.17.10) also published as 2009 WL 3241284 (S.D. Fla. September 17, 2009)(Westlaw subscription required to access Westlaw).

  In the cited case, "the insured requested, and the parties participated in, DFS [Florida Department of Financial Services, which houses the Florida Office of Insurance Regulation] mediation ... and, after the mediation reached an impasse, the parties began the appraisal process ...."  QBE Insurance Corp. v. Dome Condominium Ass'n, 2009 WL 3241284 *2 n.6 (S.D. Fla. September 17, 2009).  Neither the parties' participation in statutory Mediation, nor the parties' participation in Appraisal, affected the outcome of the Federal Court's ruling in this case.  The simple, determinative fact was that QBE Insurance Company did not provide the statutorily required notice that mediation of this dispute was available to the first-party claimant, its Insured:  "QBE lost its right to invoke appraisal by failing to comply with the notice provision of the [sic] § 627.7015 and it cannot reinstate that right.  Nothing in the statutory language would allow for that."  Id. at *3.

   This decision has not yet been appealed, and there is a good reason why not.  No judgment has been entered yet, although there has been a verdict. 

   Pacer, the online docket of this case, reveals a Jury Verdict in favor of Dome in two separate awards which total $6,400,000.00 or $6.4 Million.  Download QBE Insurance Corp. v. Dome Condominium Ass'n (S.D. Fla. Case No. 08.20906 Jury Verdict 12.18.09, Filed 12.21.09).

   Judgment has not yet been entered because the parties dispute Interest.  The Federal Court entered a Stay Order on January 13, 2010 which is apparently still in effect.  Download QBE Insurance Corp. v. Dome Condominium Ass'n (S.D. Fla. Case No. 08.20906 Order of 01.13.10 Filed 01.14.10).  This Order stayed the entry of a Judgment until the Supreme Court of Florida answers questions certified to it by the Eleventh Circuit Court of Appeals on March 9, 2009 in Chalfonte Condominium Apt. Ass'n v. QBE Insurance Corp., 561 F.3d 1267 (11th Cir. 2009).

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Comments

[William Berk]

Dennis,

I served as QBE's counsel in the trial.

The Jury was asked to determine ACV & RCV, but the two figures are not to be combined, as suggested in the Blog. The higher award, RCV, was $3,866,994. This was a gross award. The deductible is $1,968,247. Thus, the base judgment should be $1,898,747, after the deductible. FYI, QBE offered more than that before trial.

Over our objections, the insured asked the Court to refrain from entering judgment, pending the decision in Chalfonte v QBE.

[Dennis J. Wall]

Thank you. This makes things clear which is much appreciated.

Best,
Dennis Wall

[commercial property insurance]

@ Dennis, Can you please explain why was the base judgment's fee lower by 70,00$ than the deductible fee?

[Dennis Wall]

Yes, I think the Comment by Mr. Berk may be helpful in answering that. Thank you for your Comment.
Dennis Wall