Valerie Dondero, of the Miami office, obtained a summary judgment in an insurance coverage case. This case was transferred from prior defense counsel who recommended immediate settlement of the claim and told the carrier that they could not prevail. A breach of contract and bad faith claim were filed by a lienholder who alleged it was not protected on a check issued solely to the insured for repairs to the vehicle. The Insured was in a single vehicle accident in a newly acquired Ferrari and reported the loss to the carrier that day. The carrier assessed the damage to the vehicle and determined that it was repairable rather than a total loss. The insured convinced the carrier to issue a six-figure repair draft solely to him. The lienholder and the repair facility were not placed on the repair draft. The insured never paid for the repairs that were performed. The Insured also stopped paying on the financing agreement with the lienholder as well.

The lienholder asserted the insured converted the funds, which is specifically excluded under the Loss Payable Clause of the Policy. Val argued that the policy only required the lienholder to be added to a draft when the vehicle was a total loss, rather than repairable. Val also argued that the lienholder had not perfected his status with DMV until well after the accident at issue and the payment of the claim.

Plaintiff demanded the cost of repair in damages, plus interest, attorneys fees and costs and bad faith damages, that amounted to a significant exposure. The trial court found the insurance policy was unambiguous and granted judgment in favor of the carrier on the lienholder’s claims.