April 18, 2025

Federal Court Grants Summary Judgment Based on Late Notice Defense

Kelley Kronenberg Partner Kurt Ciell successfully defended an insurer in the United States District Court for the Middle District of Florida, securing summary judgment in a first-party property damage lawsuit. Magistrate Judge Thomas Wilson ruled in favor of the insurer, providing a complete defense to a six-figure claim. 

The case involved allegations of water damage from a cast-iron plumbing overflow incident allegedly occurring on May 1, 2020. The plaintiff did not notify the insurer until June 18, 2020—approximately 45 days after the incident. During this intervening period, the plaintiff had already hired handymen and plumbers to repair the plumbing issues and had removed saturated drywall from the property. 

The insurer conducted a thorough investigation including both a field adjuster inspection and an engineering assessment. During the claim investigation, the insurer requested photographs taken immediately after the loss and documentation of repairs/mitigation efforts, but the plaintiff failed to provide these materials. 

In deposition testimony, the plaintiff’s representative admitted to being aware of the loss as it was occurring, hiring contractors within five days to address plumbing issues, retaining an attorney within that same timeframe, and removing saturated drywall before notifying the insurer. 

Judge Wilson found the plaintiff failed to provide prompt notice of the loss as required under the policy and failed to rebut the presumption of prejudice to the insurer resulting from this late notice. The Court granted summary judgment, protecting the insurer from the approximately $120,000.00 claimed in damages plus potential attorney’s fees. 

This ruling reinforces the importance of policyholders’ post-loss obligations, particularly the duty to provide prompt notice. The plaintiff has 30 days from the ruling date to file an appeal. 

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