Citizens Property Insurance Corp., etc. v. Perdido Sun Condominium Association, Inc., etc.
164 So. 3d 663
Fla.2015Background
- Perdido Sun Condominium Association sued Citizens Property Insurance Corporation after a breach-of-contract win, alleging a statutory first-party bad faith claim under section 624.155(1)(b) for refusing/ delaying payment, avoiding appraisal, conditioning payment on a universal release, and a pattern of delaying settlements.
- Citizens moved to dismiss based on statutory immunity in section 627.351(6)(s)1., which bars suits against Citizens for actions taken performing its duties but lists specific exceptions, including "any willful tort."
- The trial court dismissed, holding statutory first-party bad faith was not within the listed exceptions; the First District reversed, concluding statutory bad faith fits the "willful tort" exception and certified conflict with the Fifth District.
- The Supreme Court reviewed whether the Legislature intended Citizens to be liable for statutory first-party bad faith and whether such claims constitute a "willful tort" exception to Citizens’ immunity.
- The Court held the Legislature did not include statutory first-party bad faith among the explicit exceptions to immunity, and because first-party bad faith is a statutory cause of action (not a common-law tort), it does not fall within the "willful tort" exception.
- The Supreme Court quashed the First District, approved the Fifth District’s reasoning, answered the certified question in the affirmative (that the immunity shields Citizens from suits under section 624.155(1)(b)), and remanded with instruction to reinstate dismissal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether statutory first-party bad faith under §624.155(1)(b) is an exception to Citizens’ immunity under §627.351(6)(s)1 as a "willful tort" | Statutory bad faith is a willful tort and thus falls within the "any willful tort" exception | Statutory first-party bad faith is not a tort but a statutory cause of action; Legislature did not list it as an exception | Held: No. §624.155(1)(b) claims are statutory, not "willful torts," and are not an exception to Citizens’ immunity; dismissal reinstated |
Key Cases Cited
- Diamond Aircraft Indus., Inc. v. Horowitch, 107 So. 3d 362 (Fla. 2013) (de novo review for statutory construction issues)
- Raymond James Fin. Servs., Inc. v. Phillips, 126 So. 3d 186 (Fla. 2013) (begin statutory construction with statute's text and legislative intent)
- Borden v. E.–European Ins. Co., 921 So. 2d 587 (Fla. 2006) (statutory language controls construction)
- Dobbs v. Sea Isle Hotel, 56 So. 2d 341 (Fla. 1952) (clear statutory exceptions preclude implying other exceptions)
- Citizens Prop. Ins. Corp. v. Garfinkel, 25 So. 3d 62 (Fla. 5th DCA 2009) (first-party bad faith is statutory, not a willful tort; Citizens immune)
- Citizens Prop. Ins. Corp. v. San Perdido Ass’n, 104 So. 3d 344 (Fla. 2012) (discussing when bad faith may rise to willful tort based on facts)
- State Farm Mut. Auto. Ins. Co. v. Laforet, 658 So. 2d 55 (Fla. 1995) (recognizing statutory creation of first-party bad faith cause of action)
- Opperman v. Nationwide Mut. Fire Ins. Co., 515 So. 2d 263 (Fla. 5th DCA 1987) (history of bad faith causes and fiduciary relationship at common law)