Baytree, Condominium, Section Eight, Inc. v. Clear Blue Specialty Insurance Company

CourtCourt of Appeals for the Eleventh Circuit
DecidedMay 21, 2026
Docket24-10889
StatusUnpublished

This text of Baytree, Condominium, Section Eight, Inc. v. Clear Blue Specialty Insurance Company (Baytree, Condominium, Section Eight, Inc. v. Clear Blue Specialty Insurance Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baytree, Condominium, Section Eight, Inc. v. Clear Blue Specialty Insurance Company, (11th Cir. 2026).

Opinion

USCA11 Case: 24-10889 Document: 54-1 Date Filed: 05/21/2026 Page: 1 of 22

NOT FOR PUBLICATION

In the United States Court of Appeals For the Eleventh Circuit ____________________ No. 24-10889 ____________________

BAYTREE, CONDOMINIUM, SECTION EIGHT, INC., Plaintiff-Appellant, versus

CLEAR BLUE SPECIALTY INSURANCE COMPANY, Defendant-Appellee. ____________________ Appeal from the United States District Court for the Middle District of Florida D.C. Docket No. 6:22-cv-02041-ACC-EJK ____________________

Before WILLIAM PRYOR, Chief Judge, and LUCK and BRASHER, Cir- cuit Judges. LUCK, Circuit Judge: A powerful storm hit Winter Springs, Florida, in April 2021. Nine months later, Baytree, Condominium, Section Eight, Inc. filed a claim for roof damage from the storm with its insurance USCA11 Case: 24-10889 Document: 54-1 Date Filed: 05/21/2026 Page: 2 of 22

2 Opinion of the Court 24-10889

company, Clear Blue Specialty. When the claims process stalled, Baytree sued, seeking a declaratory judgment that it was entitled to an appraisal, and damages for breach of the insurance policy. The lawsuit proceeded in two phases. First, Baytree moved for summary judgment on its appraisal claim, which the district court denied. Then, Clear Blue moved for summary judgment on both the appraisal and breach-of-insurance-policy claims. The district court granted that motion, and, while doing so, excluded an un- timely supplemental opinion from one of Baytree’s experts. After careful review, and with the benefit of oral argument, we affirm the denial of Baytree’s summary-judgment motion on the appraisal claim in the first phase of the case. And we affirm the exclusion of the supplemental opinion by Baytree’s expert. But we reverse the summary judgment for Clear Blue during the second phase because there’s a jury issue about whether Baytree’s late no- tice of the roof damage prejudiced Clear Blue in investigating the loss.

FACTUAL BACKGROUND The Insurance Policy Baytree is made up of four buildings numbered 80, 90, 100, and 110. In 2021, it purchased a year-long insurance policy for the four buildings beginning on April 1. The policy included three relevant provisions: the coverage provision; the appraisal provision; and the notice provision. First, the coverage provision required Clear Blue to “pay for direct USCA11 Case: 24-10889 Document: 54-1 Date Filed: 05/21/2026 Page: 3 of 22

24-10889 Opinion of the Court 3

physical loss of or damage to [c]overed [p]roperty at the premises . . . caused by or resulting from any [c]overed [c]ause of [l]oss.” The “[c]overed [p]roperty” included Baytree’s four buildings. And windstorms and hail were covered causes of loss under the policy. Second, the appraisal provision offered the parties a process for resolving “disagree[ments] on the value of the property or the amount of loss”: [E]ither [party] may make written demand for an ap- praisal of the loss. In this event, each party will select a competent and impartial appraiser. The two ap- praisers will select an umpire. If they cannot agree, either may request that selection be made by a judge of a court having jurisdiction. The appraisers will state separately the value of the property and amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will:

a. Pay its chosen appraiser; and

b. Bear the other expenses of the appraisal and um- pire equally.

If there is an appraisal, [Clear Blue] will still retain [its] right to deny the claim.

And third, under the notice provision, if Baytree had a cov- ered loss, it had to give Clear Blue “prompt notice of [any] loss or damage[,] [i]nclud[ing] a description of the property involved.” Baytree was not allowed to “bring a legal action against [Clear USCA11 Case: 24-10889 Document: 54-1 Date Filed: 05/21/2026 Page: 4 of 22

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Blue] . . . unless . . . [t]here ha[d] been full compliance with all of the terms of [the policy],” including the notice provision. The Storm and Other Damage On April 10 and 11, 2021, a storm damaged the roofs of Bay- tree’s buildings. Within two days, Baytree’s property manager vis- ited the property. She saw shingles on the ground that weren’t concentrated around one building. And she saw “small branches all over the place.” There were other problems with the Baytree buildings in 2021. A section of building 90’s roof was “peeled back” by “another storm” in early August. Baytree received a complaint from a build- ing 90 resident about a roof leak after the August storm. Residents in buildings 80 and 100 also reported roof leaks to the property manager. The “bulk of” these reports were made during the “rainy season,” between May and September. In response to the complaints, Baytree sent two contractors to inspect the roofs and ordered semi-permanent repairs to avoid further interior damage. The first contractor replaced the peeled- back row of shingles on building 90 and covered them with a tarp two days after the August storm. The second contractor, in Sep- tember, removed a single, undamaged shingle from building 90 and replaced it with a temporary one so it could be identified for permanent repairs. The second contractor returned twice in Octo- ber to inspect the property and observed wind and “potential” hail damage to the roofs. USCA11 Case: 24-10889 Document: 54-1 Date Filed: 05/21/2026 Page: 5 of 22

24-10889 Opinion of the Court 5

The Claims Process Baytree did not notify Clear Blue about the April 2021 storm until nine months later, in January 2022. When it finally gave no- tice, Baytree said that its roofs were damaged by wind and hail from the April storm. Baytree’s expert determined that the roof damage was covered by the policy and the roofs needed to be re- placed at an estimated cost of $1,191,799.52. Clear Blue responded with a reservation of rights letter. In the letter, Clear Blue agreed it would investigate the claim, but it would do so only “under a full and complete [r]eservation of [r]ights for late reporting . . . extend[ing] to all facts, known and unknown, as they may pertain to this claim.” Clear Blue contin- ued: Any action taken by [Clear Blue] in the investigation, defense, or settlement of this claim shall not consti- tute or be construed as a waiver or an estoppel of any rights or defenses [Clear Blue] ha[s] under the subject policy of insurance. [Clear Blue] further reserve[s] the right to deny coverage and withdraw from any further participation in this matter altogether, should facts be developed, that determine the above-cap- tioned policy does not cover this loss.

....

Neither this communication and undertaking, nor any future communication or undertaking, should be deemed or construed as a waiver of any of the rights USCA11 Case: 24-10889 Document: 54-1 Date Filed: 05/21/2026 Page: 6 of 22

6 Opinion of the Court 24-10889

of [Clear Blue], including those rights provided in the contract of insurance.

As part of its investigation, Clear Blue sent a field adjuster and an engineer to inspect the four buildings and determine the cause and scope of the damage and repairs. Following the inspec- tions, Clear Blue agreed there was a covered loss to the property from the April 2021 storm consisting of repairable wind damage to ten shingles on buildings 90, 100, and 110. But there was no dam- age to building 80. The repairs, Clear Blue estimated, would cost $2,022.48. Since that amount was below the policy deductible, Clear Blue concluded it owed nothing. And it once again reserved its rights to assert any coverage defenses under the policy. For its part, Baytree disputed Clear Blue’s damage calcula- tion and demanded appraisal.

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Baytree, Condominium, Section Eight, Inc. v. Clear Blue Specialty Insurance Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baytree-condominium-section-eight-inc-v-clear-blue-specialty-insurance-ca11-2026.