October 16, 2024

Kelley Kronenberg Secures Appellate Victory in Insurance Payment Dispute

In a recent case before Florida’s Fourth District Court of Appeal, Kelley Kronenberg Partner/Business Unit Leader Andrew Labbe successfully defended the Appellee, an insurance company, in a first-party property insurance claim appeal. This case, which resulted in a victory for our client, centered on allegations of breach of contract related to the insurer’s payment practices following a property damage claim. 

The dispute arose when the insured assigned rights to two vendors for mitigation work. The Appellee issued full payment for the claim, with checks made payable to the named insureds, mortgagee, and both assignees. These payments were mailed directly to the named insured. 

The Appellant, a mitigation company and assignee, filed suit claiming that the Appellee breached the policy by including the insured and an additional mitigation company on claim payments and by mailing the checks directly to the insured. The Appellant asserted entitlement to damages in this case valued at approximately $100,000.00. 

In defending our client, Andrew focused on the policy language, which explicitly states that a breach of the Loss Payment provision does not, on its own, provide grounds for a cause of action. He argued that the policy did not require the Appellant to be the sole payee on the check, nor did it mandate that checks be mailed directly to the Appellant. Consequently, Andrew contended that the Appellant could not establish a material breach of contract. 

The appellate court affirmed the summary judgment in favor of the Appellee, finding no breach of contract as a matter of law. This ruling validates our interpretation of the policy and our client’s actions.  

This case is significant as it reinforces the importance of carefully analyzing policy language in insurance disputes. It also supports insurers’ ability to include multiple relevant parties on claim payments and to direct those payments as they see fit, provided such actions align with policy terms. This outcome demonstrates our firm’s expertise in insurance law and appellate practice, particularly in complex first-party property cases. 

For additional successes and details about our first-party property insurance defense practice, click here

Stay abreast of the latest developments in first-party property insurance law with our newsletter, “In the Know: First-Party Property Appellate Edition.” Get the latest edition here.