909 F. Supp. 2d 1363
S.D. Fla.2012Background
- State Farm seeks declaratory judgment that Baldassini policy does not cover the July 22, 2010 golf-cart accident in Florida.
- Defendants include Sol Baldassini and the Baldassinis; Owners’ policy (recreational vehicle) settled with State Farm for the Owners’ claim.
- Policy defines a car as a land motor vehicle with four or more wheels designed for use mainly on public roads; ST Express is a golf cart not designed for public-road use.
- ST Express was allowed to operate on Key Biscayne streets in limited fashion per local ordinance; E-Z-Go manuals indicate off-road design and limited public-road use, not main use.
- Bailey v. Netherlands Insurance Co. (M.D. Fla. 2009) supports view that golf carts are not covered auto when not designed for public-road use; Florida law governs interpretation of the policy.
- Court applies Florida choice-of-law and interprets the policy as a matter of law; grants State Farm’s summary judgment and denies Defendants’ summary judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether ST Express qualifies as a car under the policy. | State Farm: golf cart not designed for use mainly on public roads. | Baldassinis: design/use may include public-road operation per circumstances. | Not a car; ST Express lacks main-road design. |
| What law governs insurance contract interpretation. | Florida law applies (lex loci contractus). | Florida law also governs; standard interpretations favored. | Florida law governs interpretation. |
| Is the policy language ambiguous regarding coverage for golf carts. | Policy unambiguous; defines car with four wheels and public-road use. | Ambiguity could extend coverage to golf carts. | Policy language unambiguous; golf cart excluded. |
| Does Bailey v. Netherlands Insurance Co. support denial of coverage? | Bailey supports no coverage for golf carts not designed for public roads. | Bailey is distinguishable but supports potential coverage. | Bailey supports denial; no coverage here. |
Key Cases Cited
- Bailey v. Netherlands Ins. Co., 615 F.Supp.2d 1332 (M.D. Fla. 2009) (golf cart not a covered auto when not designed for public roads)
- Garcia v. Fed. Ins. Co., 969 So.2d 288 (Fla. 2007) (construction of insurance contracts; plain meaning vs. ambiguity)
- Great Am. Fid. Ins. Co. v. JWR Constr. Servs., Inc., 882 F.Supp.2d 1340 (S.D. Fla. 2012) (policy interpretation as law; summary judgment on policy terms)