19 Fla. L. Weekly Supp. 357c
Online Reference: FLWSUPP 1905PACAInsurance — Homeowners — Sinkhole damage — Bad faith failure to settle claim — Insurer is entitled to summary judgment on homeowners’ bad faith action where, after homeowners filed civil remedy notice based on insurer’s denial of claim for sinkhole damage, insurer withdrew denial, demanded appraisal and paid appraisal award
CHARLES and REBECCA PACATTE, Plaintiffs, vs. STATE FARM FLORIDA INSURANCE COMPANY, Defendant. Circuit Court, 10th Judicial Circuit in and for Polk County, General Civil Division. Case No. 09-CA-10974, Section 11. January 19, 2011. Honorable Donald G. Jacobsen, Judge. Counsel: Jean Frances Niven, Merlin Law Group, P.A., Tampa, for Plaintiffs. Lee Craig and Timothy R. Engelbrecht, Butler Pappas Weihmuller Katz Craig LLP, Tampa, for Defendant.
ORDER GRANTING DEFENDANT’S MOTIONFOR FINAL SUMMARY JUDGMENT
THIS CAUSE came on for hearing on Defendant’s Motion for Final Summary Judgment, or, Alternatively, Dismissal. There are no genuine issues of material fact. Defendant is entitled to final summary judgment on these facts:
Plaintiffs made a claim to Defendant alleging sinkhole activity was causing damage to their house. Defendant hired a licensed geologist who, after testing, reported that sinkhole activity was not causing damage to Plaintiffs’ house. Defendant relied on the licensed geologist and denied Plaintiffs’ claim in a letter dated June 23, 2004.
On April 15, 2005, Plaintiffs filed a Civil Remedy Notice of Insurer Violation (“the Notice”) pursuant to Florida Statute § 624.155. That statute gives an insurer 60 days from the date of the Notice to reevaluate the claim and fulfill its contractual obligations. On May 10, 2010, Defendant sent Plaintiffs a letter stating Defendant was withdrawing its claim denial and was demanding appraisal. This letter cured the Notice because Defendant agreed to go forward under the terms of the insurance contract and the letter was sent within the 60 days provided for in the statute.
The appraisal went forward and Defendant timely paid the resulting appraisal award. Thus, Defendant did not breach the insurance contract. Because Defendant did not breach the insurance contract, Defendant is entitled to final summary judgment on Plaintiffs’ “bad faith” action brought pursuant to Florida Statute § 624.155. Therefore, it is ORDERED and ADJUDGED:
1. That Defendant’s Motion for Final Summary Judgment is GRANTED; and
2. Plaintiff shall take nothing by this action, and Defendant shall go hence without day.
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