Kelley Kronenberg Secures Summary Judgment on Fraud Counterclaims Against AOB Company
Kelley Kronenberg Partner/Business Unit Leader Jake D. Huxtable and Practice Partner Zachary A. Schiffman turned what began as a defensive battle into an offensive triumph for First Protective Insurance Company d/b/a Frontline Insurance, securing summary judgment on fraud-based counterclaims and a Court order requiring an assignment of benefits company to repay $32,810.72 in fraudulently obtained funds.
The scheme started in September 2018 when SFR Services acquired an assignment of benefits to file a hurricane damage claim for a Coral Springs property. Right away, SFR misrepresented itself as the homeowner’s contractor despite lacking a qualifying roofing license. The company told the homeowner it would perform the work—another lie.
After filing the claim, SFR gave the homeowner a proposal for roof replacement: $53,202.55. But the numbers SFR submitted to Frontline told a very different story. The carrier received estimates and invoices of $164,381.07, then $128,428.63, then $164,381.07 again. Eventually SFR paid a licensed contractor $53,953.00 to actually replace the roof—creating a gap of over $110,000.00 between what it sought from the carrier and what the work actually costs.
Then SFR sued Frontline for breach of contract, claiming the carrier wrongfully refused to pay the $164,381.07 invoice. During litigation, the deception continued. SFR produced another estimate: $147,654.14. At deposition, yet another number appeared: $117,976.83. All while knowing the roof had already been replaced for approximately $53,000.00.
Jake handled the contentious breach of contract defense over several years of complex litigation. Through aggressive discovery, he uncovered evidence of SFR’s unconscionable conduct that went far beyond mere contract disputes. Instead of playing defense, Jake filed counterclaims for fraudulent misrepresentation, civil theft, and unjust enrichment.
The strategy worked. Jake prevailed on summary judgment, defeating SFR’s entire breach of contract case against Frontline. With the primary threat eliminated, Jake brought in Zach to pursue the counterclaims against SFR and its prominent South Florida counsel.
Their motion for summary judgment on the fraud claims laid out the pattern systematically: SFR misrepresented its licensing status and role, submitted wildly inflated estimates ranging from $117,976.83 to $164,381.07, concealed that the actual work cost only $53,000.00, and pocketed the difference. The evidence showed SFR made knowing false statements intending Frontline to rely on them, which the carrier did—to its financial detriment.
The Court granted summary judgment on both the unjust enrichment and fraudulent misrepresentation claims. More importantly, the Court ordered SFR to repay $32,810.72—the overpayment Frontline made based on SFR’s intentional fraud. What started as a defendant’s fight for survival became an affirmative recovery.
The battle isn’t over. Frontline’s civil theft counterclaim remains pending with trial set for January 2026. Success on that claim could trigger treble damages under Florida’s civil theft statute, potentially tripling the recovery and delivering an even stronger message about fraudulent AOB practices.
This outcome offers a litigation blueprint for carriers facing AOB fraud. When discovery reveals inflated invoicing and concealed actual costs, don’t just defend—counterattack. Fraud-based counterclaims can shift the entire dynamic of the case, turning exposure into recovery and deterring future misconduct.
The case sends a clear warning to AOB companies engaging in fraudulent billing: carriers will pursue counterclaims aggressively, courts will grant summary judgment when fraud is proven, and wrongdoers will be ordered to return ill-gotten funds. With treble damages potentially on the horizon through the pending civil theft claim, SFR’s misconduct may ultimately cost far more than it gained.
Jake and Zach’s work showcases how skilled attorneys can transform years of complex litigation from a defensive slog into an offensive victory. By recognizing when evidence crosses the line from mere dispute into actionable fraud, they not only protected their client but recovered money and set precedent for future AOB abuse cases.
Learn more about the firm’s First-Party Property and Coverage Division; click here: https://www.kelleykronenberg.com/our-practices/first-party-insurance-defense-coverage-bad-faith/
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