Morrison v. Homewise Preferred Insurance Co.
209 So. 3d 682
| Fla. Dist. Ct. App. | 2017Background
- Patricia Morrison sued her insurer, Homewise, for breach of a homeowners policy after alleged sinkhole damage; that suit was filed before Homewise became insolvent.
- While the case was pending, Homewise was placed in receivership and later declared insolvent; the Department of Financial Services’ receivership triggered FIGA’s activation and reassignment of Morrison’s claim to the Florida Insurance Guaranty Association (FIGA).
- Morrison moved to amend her complaint and substitute FIGA as a defendant after insolvency; those motions were filed after the one-year limitation periods in sections 631.68 and 95.11(5)(d) had expired.
- The trial court denied the motions as untimely and dismissed Morrison’s suit with prejudice, concluding Morrison failed to sue FIGA within the statutory limitation periods.
- Morrison appealed, arguing the FIGA limitation statutes apply only to claims not already filed against an insurer before insolvency and thus do not bar substitution in her pending suit.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the one‑year FIGA limitation periods (§631.68 and §95.11(5)(d)) bar substitution of FIGA in a first‑party suit filed against the insurer before insolvency | Morrison: Statutes apply only to suits not filed before insolvency; pending suits may be stayed and FIGA substituted without refiling | FIGA: The limitation periods require claimants to file against the association within one year of the claims deadline, regardless of pendency | The court held the statutes do not apply to first‑party suits already pending against the insurer at insolvency; substitution and amendment should be allowed |
Key Cases Cited
- Queen v. Clearwater Elec., 555 So. 2d 1262 (Fla. 2d DCA) (related statutes must be read in pari materia)
- Betancourt v. Fla. Ins. Guar. Ass’n, Inc., 153 So. 3d 936 (Fla. 2d DCA) (if no suit was filed pre‑insolvency, claimant must sue FIGA within statutory period)
- Fla. Ins. Guar. Ass’n, Inc. v. Mendoza, 193 So. 3d 940 (Fla. 3d DCA) (limitations in §631.68 inapplicable to first‑party suits pending at insurer insolvency)
- City of Boca Raton v. Gidman, 440 So. 2d 1277 (Fla. 1983) (statutes should receive rational, sensible construction)
- Fla. Ins. Guar. Ass’n, Inc. v. Devon Neighborhood Ass’n, Inc., 67 So. 3d 187 (Fla. 2011) (FIGA Act is designed to protect insureds)