Perdido Sun Condominium Ass'n v. Citizens Property Insurance Corp.
129 So. 3d 1210
Fla. Dist. Ct. App.2014Background
- Perdido Sun Condominium Association sued Citizens Property Insurance Corporation after Citizens underpaid a hurricane claim and Perdido Sun prevailed on a breach-of-contract suit affirming additional recovery.
- Perdido Sun then filed a statutory bad-faith claim under section 624.155(1)(b)(1) (failure to attempt in good faith to settle claims).
- Citizens moved to dismiss, asserting statutory immunity under section 627.351(6)(s)1., which immunizes Citizens and its agents for actions taken performing duties under that subsection, subject to enumerated exceptions.
- The circuit court dismissed Perdido Sun’s 624.155 claim with prejudice, concluding Citizens’ immunity bars this statutory bad-faith action because 624.155 is not expressly listed among the exceptions.
- The First District reversed, holding the statutory “willful tort” exception to Citizens’ immunity encompasses a willful failure to attempt in good faith to settle under section 624.155, and remanded for further proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Citizens’ statutory immunity under §627.351(6)(s)1. bars a §624.155 bad-faith claim | Perdido Sun: The willful-tort exception (§627.351(6)(s)1.a) applies because a willful failure to settle in good faith is an intentional tort | Citizens: Exceptions to immunity must be strictly construed; §624.155 is not expressly listed, so immunity bars the claim | Held: Reversed. The willful-tort exception can encompass a §624.155 claim when plaintiff proves willfulness and lack of good faith |
| Whether Citizens qualifies as an “insurer” subject to §624.155 despite being a statutorily created government entity | Perdido Sun: Citizens is an insurer under statutory definitions and owes policyholders a duty of good faith | Citizens: Citizens differs from private insurers and its special status limits exposure to statutory remedies | Held: Citizens is an insurer for purposes of §624.155; the statute imposes a duty of good faith that can support a tort claim |
| Whether a statutory duty violation can create a private cause of action | Perdido Sun: Legislative intent in §624.155 clearly creates a private remedy for persons damaged by insurer bad faith | Citizens: (Implicit) Absent explicit reference in the immunity statute, statutory duties should not override immunity | Held: Legislative intent created the private cause of action; whether plaintiff proves willfulness remains a merits question |
| Proper scope of dismissal with prejudice at pleading stage | Perdido Sun: Dismissal barred its ability to prove willful bad faith on remand | Citizens: Argued dismissal was appropriate based on statutory immunity | Held: Dismissal with prejudice was improper; case remanded for factual development on willfulness and bad faith |
Key Cases Cited
- Florida Dep’t of Corrections v. Abril, 969 So.2d 201 (Fla. 2007) (standard of de novo review for dismissal based on legal insufficiency)
- Citizens Prop. Ins. Corp. v. Garfinkel, 25 So.3d 62 (Fla. 5th DCA 2009) (analyzed Citizens’ immunity under §627.351 and its exceptions)
- Citizens Prop. Ins. Corp. v. San Perdido Ass’n, Inc., 104 So.3d 344 (Fla. 2012) (addressed related immunity issues; discussed in this court’s opinion)
- Perdido Sun Condo. Ass’n, Inc. v. Citizens Prop. Ins. Corp., 22 So.3d 71 (Fla. 1st DCA 2009) (prior breach-of-contract appeal between these parties)
- Aramark Uniform & Career Apparel, Inc. v. Easton, 894 So.2d 20 (Fla. 2005) (statutory private cause of action depends on legislative intent)