September 29, 2023

Kelley Kronenberg Secures Summary Final Judgment in Complex Insurance Case

Kelley Kronenberg Partners, Jordan Lande and Derek Goldsmith, achieved a significant victory in a complex insurance case by obtaining a Summary Final Judgment. This outcome stems from their diligent defense in a lawsuit related to a claim brought by an assignee of Frontline’s Insureds, Pack-Out Doctor, LLC., in connection with damages caused by Hurricane Michael. The case hinged on the exhaustion of the policy’s mold limit and Frontline’s actions in relation to that limit. 

The case grew out of an insurance claim filed by the Insureds for damage resulting from Hurricane Michael. Before Pack-Out Doctor, LLC. became involved in the claim, Frontline’s Insureds had already engaged the services of multiple mold remediation/mitigation companies. In this legal action, Pack-Out Doctor, LLC. sought payments exceeding $10,000.00 for mold remediation services. 

Frontline investigated the claim and made payments to the insureds and other third-party companies that provided mold remediation services before Pack-Out Doctor’s involvement. Crucially, the insurance policy contained a clearly defined and unambiguous Limited Fungi, Wet or Dry Rot, or Bacteria limit set at $10,000.00. Frontline had already paid out the policy limit under this provision to the companies retained before Pack-Out Doctor’s involvement, effectively precluding any additional recovery sought by the plaintiff under the same provision. Subsequently, on behalf of Frontline, Jordan filed a Motion for Summary Final Judgment, asserting that there were no material facts in dispute. 

The insureds’ policy stipulated a $10,000.00 limit for Limited Fungi, Mold, Wet or Dry Rot, or Bacteria coverage, and it explicitly disallowed exceeding this limit. Frontline had neither authorized nor provided permission for Pack-Out Doctor, LLC. to carry out the work it did, exceeding the Limited Fungi, Mold, Wet or Dry Rot, or Bacteria coverage. Frontline argued that it had fully complied with the policy’s terms and conditions by disbursing the Limited Fungi, Mold, Wet or Dry Rot, or Bacteria coverage limits to the earlier companies involved.  

Undisputed facts established that Pack-Out Doctor, LLC.’s services were directly related to mold claims, as confirmed during the discovery process. Equally undisputed was the fact that the Limited Fungi, Mold, Wet or Dry Rot, or Bacteria coverage limits had been exhausted before Pack-Out Doctor, LLC. entered the picture. 

During the hearing on Frontline’s Motion for Summary Final Judgment, the evidence presented by the plaintiff failed to counter the admission that their services were mold related. Furthermore, none of the plaintiff’s submissions opposing Frontline’s Motion managed to create a genuine issue of fact. As a result, the Court granted Frontline’s Motion for Summary Final Judgment. 

Jordan Lande and Derek Goldsmith’s successful defense in this case not only averted potential risk valued at approximately $40,000 but also positions Frontline to potentially recoup fees and costs. The plaintiff’s rejection of the defense proposal for settlement may entitle Frontline to such fees and costs, and Frontline has further served a 57.105 Motion for Sanctions in response to the case’s issues.  

Jordan Lande and Derek Goldsmith are distinguished leaders on Kelley Kronenberg’s First-Party Property Insurance Defense Team, boasting a stellar track record of successfully navigating intricate legal challenges in this specialized field. With their expertise and commitment to delivering favorable outcomes for clients, they stand as reliable advocates for those in need of insurance defense assistance. Contact them today to ensure your rights and interests are safeguarded with unparalleled dedication and proficiency.