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Florida Supreme Court Rules that a Chapter 558 Notice is an Alternative Dispute Resolution Proceeding

The Florida Supreme Court, in Altman Contractors Inc. v. Crum & Forster Specialty Ins. Co., SC16-1420 (Fla. Dec. 14, 2017), has just issued an important decision regarding an insurer’s duty to defend under a Chapter 558 notice. In Altman, the Court ruled that the notice and repair process set forth in Chapter 558 constitutes a “suit” within the definition of the commercial general liability policy at issue. The Court ruled that, although it is not a “civil proceeding,” the Chapter 558 process is included in the policy’s definition of a “suit” as an “alternative dispute resolution proceeding,” to which the insurer’s consent is required to invoke the insurer’s duty to defend the insured. Thus, insurers should evaluate their duties under such policies as soon as a Chapter 558 notice has been served. Should you have any questions or concerns regarding this case and its implications, please do not hesitate to contact us at info@kubickidraper.com.

http://www.floridasupremecourt.org/decisions/2017/sc16-1420.pdf

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