February 5, 2025

Court Dismisses $30K Mold Claim Over Invalid Assignment of Benefits

In a significant ruling for insurers, Kelley Kronenberg Partner Austin Miniard secured a dismissal with prejudice in a property damage case filed against a Florida insurer in Alachua County, Florida. The case involved an Assignment of Benefits (AOB) claim for mold testing and remediation services. 

On behalf of the defense, Austin successfully argued that the AOB was invalid under Florida Statute 627.7152 due to contradictory indemnification provisions. While the agreement included the statutorily required assignee indemnification clause, it also contained a “Stop Work Hold Harmless” provision that effectively nullified the statutory requirement by creating a carve-out for certain claims. 

Austin demonstrated that this contradiction violated Florida Statute 627.7152(2)(a)(8), which requires AOB agreements to contain a clear, one-way indemnification clause protecting the assignor. The Court agreed that the statute does not permit such exceptions, rendering the entire assignment invalid. 

This dismissal with prejudice eliminates the Plaintiff’s claim which had an estimated total exposure exceeding $30,000.00. The ruling prevents refiling, providing the insurer with a complete defense victory and establishing important precedent for future AOB cases involving indemnification provisions. 

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