March 1, 2025
ShareKelley Kronenberg Secures Strategic Resolution in $50K AOB Dispute
Kelley Kronenberg Practice Partner Coral Lerner achieved a significant victory for Citizens Property Insurance Corporation in Polk County Court, strategically resolving an Assignment of Benefits (AOB) dispute that carried approximately $50,000.00 in total exposure including attorneys’ fees and costs.
The case involved multiple AOBs for water mitigation and tarping services totaling nearly $30,000.00. Through targeted requests for admissions, Coral secured crucial admissions from the plaintiff, Plus Restoration LLC, establishing that their largest invoice of approximately $18,000.00 was actually pursuant to a Direction to Pay rather than an AOB – a distinction that would exclude it from the litigation since indemnity matters had proceeded to appraisal.
Coral crafted a motion for summary judgment challenging the AOB’s validity, highlighting deficiencies in the 18-point notice, problematic hold harmless and indemnification clauses, and impermissible deductible language. While the initial motion to dismiss based on AOB invalidity was denied on procedural grounds, Coral’s strategic positioning of the case, combined with an upcoming summary judgment hearing and scheduled depositions, led the plaintiff to accept a previously extended nominal proposal for settlement.
This outcome demonstrates the effectiveness of combining aggressive motion practice with strategic discovery to achieve favorable resolutions in AOB disputes, ultimately protecting the carrier from significant exposure.
Click here to discover how Kelley Kronenberg’s First-Party Property Insurance Defense team leverages expert findings and strategic depositions to secure dismissals and protect our clients from unwarranted claims.
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