July 11, 2024

Kelley Kronenberg Secures Minimal Settlement in Excessive Property Damage Claim

Kelley Kronenberg Partner Kathrine Conroy of the firm’s First-Party Property Division recently achieved a remarkable victory for State Farm in a case underscoring the importance of thorough investigation and strategic defense in property damage claims.

The case before Florida’s Ninth Judicial Circuit in Osceola County involved homeowners who filed a breach of contract suit seeking damages in excess of $100,000.00 following an alleged kitchen sink leak. The plaintiffs submitted a grossly excessive estimate that included full kitchen replacement, new flooring throughout the home, and complete repainting.

Kathrine mounted a robust defense, arguing wear, tear, deterioration, and long-term leakage and seepage. During depositions, her strategic questioning revealed crucial information: the plaintiffs had noticed the issue long before the reported date of loss, with one plaintiff testifying that the smell was so severe she thought it might be a dead animal. The allegedly leaking garbage disposal was also approximately 18 years old, supporting the defense’s arguments.

In a bold move, Kathrine filed a motion for sanctions under Florida Statute 57.105, asserting that the plaintiffs knew or should have known their action was frivolous at the time of filing. This motion, combined with an expired Proposal for Settlement, provided potential avenues for State Farm to recover fees.

Kathrine’s aggressive approach proved highly effective. Despite the plaintiffs previously rejecting offers as high as $10,000.00, the filing of the Motion for Sanctions led to a settlement for a mere $500.00. This outcome represents a significant win for State Farm, avoiding a potential exposure exceeding $100,000.00, plus the costs and uncertainties associated with protracted litigation.

This case highlights the value of persistence and resoluteness in the face of excessive claims. We thank Ana Carrillo of State Farm for trusting us with this matter and supporting our tough stance, even after mediation reached an impasse.

Interested in reading more wins by Kelley Kronenberg’s First-Party Property Team? Click here.