Kameron Romaelle, from our Ft. Lauderdale office, secured summary judgment in favor of a homeowners insurance carrier in a case brought by the Plaintiffs/Insureds, who sought payment for services rendered by Remediation One under an assignment of benefits (AOB) agreement.
Pre-suit, the carrier had already issued a $3,000 payment to Remediation One pursuant to the statutory cap under Fla. Stat. § 627.7152. However, just a week before filing suit, the Insureds executed a revocation of the AOB and attempted to pursue recovery of the remaining invoice balance directly.
The carrier moved for summary judgment, arguing that the Insureds lacked standing and, even if standing existed, no recoverable damages remained because they were indemnified under Fla. Stat. § 627.7152(7)(a). This was a novel legal issue with no existing case law. Kameron successfully persuaded the Court that the Insureds had no verifiable damages, and that any alleged harm was self-inflicted when they chose to rescind the AOB. He further established that the lawsuit was a transparent attempt to circumvent the statutory cap.
Plaintiffs countered that the Insureds could revoke the AOB at will and that the insurer lacked grounds to challenge standing, further arguing that Fla. Stat. § 627.7152(7)(b) left the Insureds liable for the balance of the invoices. The Court rejected these arguments, adopting Kameron’s reasoning, and even questioned the Insureds’ motives in signing the rescission. Ultimately, the Court granted summary judgment in favor of the carrier, clearing the way for Kameron to enforce the carrier’s previously expired Proposal for Settlement (PFS).
