Diocese of Saint Petersburg, Inc. v. National Union Fire Insurance Company of Pittsburgh, PA.
8:17-cv-00886
M.D. Fla.May 10, 2017Background
- Diocese of Saint Petersburg (Plaintiff) contracted with Unisource Administrators to adjust its workers’ compensation claims; National Union (Defendant) insured Unisource and Plaintiff was certificate holder.
- Plaintiff alleges Unisource failed to notify Plaintiff’s excess carrier about a claim by former employee Randi Fisher; Plaintiff sued Unisource in state court and obtained a final default judgment for $388,510.70.
- Plaintiff repeatedly requested from National Union the insurer information and a copy of the policy as required by Fla. Stat. § 627.4137; National Union never responded or produced the policy.
- Plaintiff then sued National Union asserting (1) breach of contract and (2) a statutory claim for violation of § 627.4137; National Union moved to dismiss Count II arguing Florida does not recognize a private cause of action under that statute.
- The district court considered whether a third-party claimant who has obtained a judgment against an insured may maintain a § 627.4137 claim against the insurer and whether the insurer’s failure to disclose may waive coverage defenses.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a third-party claimant may sue an insurer under Fla. Stat. § 627.4137 after obtaining a judgment against the insured | A private cause of action exists when claimant has a final judgment and insurer’s failure to disclose prejudices claimant | § 627.4137 does not create a private right of action against an insurer | Denied motion to dismiss: claim may proceed where claimant has judgment and alleges prejudice from nondisclosure |
| Whether insurer’s failure to provide policy/info can waive insurer’s coverage defenses | Nondisclosure can result in waiver of coverage defenses and prejudice claimant’s ability to respond | Insurer argued no private remedy under the statute | Court allowed allegation that nondisclosure may preclude insurer defenses, citing Florida precedent |
Key Cases Cited
- Lucente v. State Farm Mut. Auto. Ins. Co., 591 So. 2d 1126 (Fla. 4th DCA 1992) (recognizes action under prior statute may lie only after judgment against insured)
- United Auto. Ins. Co. v. Rousseau, 682 So. 2d 1229 (Fla. 4th DCA 1996) (insurer’s failure to provide policy can preclude asserted policy defenses)
- Figueroa v. U.S. Security Ins., 664 So. 2d 1130 (Fla. 3d DCA 1995) (insurer’s nondisclosure of policy undermined summary judgment defense based on policy conditions)