Geico General Insurance Co. v. Hoy
136 So. 3d 647
Fla. Dist. Ct. App.2013Background
- Hoy obtained a favorable fraud in the inducement verdict against GEICO after a hospitalization lien reduced her UM benefits.
- Hospital lien on insurance proceeds allowed the Hospital to be paid in full before Hoy received any UM funds.
- GEICO paid $10,000 in PIP to the Hospital and offered $10,000 in UM benefits to Hoy, which she signed away via a release.
- Hospital later agreed to accept $5,000 of the UM benefits to permit Hoy to receive $5,000; GEICO reissued two checks totaling $10,000 to hospital and Hoy.
- Hoy ultimately received $5,000; the Hospital wrote off approximately $24,039.75 lien balance, resolving the lien.
- Trial focused on Hoy’s fraud claim; verdict awarded $20,000 plus an unexplained write-in for costs/attorney fees, which remittitur reduced to $5,000 but Hoy opted for new damages trial.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Damages element in fraud claim | Hoy asserts misrepresentation caused pecuniary injury. | GEICO argues Hoy cannot prove any loss from the alleged misrepresentation. | Directed verdict for GEICO warranted; no proven damages. |
| Directed verdict standard | Hoy contends evidence supports fraud claim against GEICO. | GEICO maintains no damages were shown. | Court affirmed reversal for directed verdict on the damages issue; granted judgment for GEICO. |
| Punitive damages amendment | Hoy sought permission to amend for punitive damages. | GEICO opposes punitive damages absent substantial evidence of gross negligence. | Trial court denial affirmed; no reasonable basis for punitive damages. |
Key Cases Cited
- Sims v. Cristinzio, 898 So.2d 1004 (Fla. 2d DCA 2005) (directed verdict standard—view of evidence favorable to nonmovant)
- Mettler, Inc. v. Ellen Tracy, Inc., 648 So.2d 253 (Fla. 2d DCA 1994) (elements of fraud in the inducement)
- Sutton v. Gulf Life Ins. Co., 189 So. 828 (Fla. 1939) (damages requirement in fraud actions)
- Casey v. Welch, 50 So.2d 124 (Fla.1951) (damages requirement for fraud claims)