The insured filed a claim with her insurer after cracks developed on the exterior of her home. The damage resulted from sinkhole activity, which was a covered cause of loss under her homeowners policy. The insured and the insurer disagreed over the amount payable to remediate the damages, but the company did not request an appraisal. The insured sued the insurer for breach of contract because the insurer did not pay the amounts that she believed were due to her. The insurer asserted that the claim was not covered, and invoked the appraisal provision. The insured agreed to stay the lawsuit pending completion of the appraisal process.
Once this was completed, the insurer paid the claim. The insured filed motions to confirm the appraisal award and to determine the amount of payment due to her for attorney’s fees and costs. The trial court confirmed the appraisal award and awarded the insured $39,038 in fees and costs. The insurer appealed, arguing that the insured’s lawsuit was unnecessary as she could have initiated the appraisal process. The insurer also alleged that the insured had filed the lawsuit primarily to obtain attorney’s fees.
The Appellate Court disagreed that the insured had filed a suit for any improper purpose. They noted the ongoing disagreements between the insured and the insurer as to the value of the claim, and that the insurer did not request an appraisal until after the insured had initiated her lawsuit. The decision of the underlying court was affirmed in favor of the insured. The insurer’s request for a rehearing was denied.
First Floridian Auto & Home Insurance Company, Appellant, v. Tscharner Myrick, Appellee, District Court of Appeal of Florida, Second District, November 9, 2007. Affirmed.