Maloy v. Scottsdale Ins. Co.

376 F. Supp. 3d 1249
CourtDistrict Court, M.D. Florida
DecidedMarch 26, 2019
DocketCase No: 2:17-cv-470-FtM-29MRM
StatusPublished

This text of 376 F. Supp. 3d 1249 (Maloy v. Scottsdale Ins. Co.) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Maloy v. Scottsdale Ins. Co., 376 F. Supp. 3d 1249 (M.D. Fla. 2019).

Opinion

JOHN E. STEELE, SENIOR UNITED STATES DISTRICT JUDGE

This matter comes before the Court on plaintiff's Motion for Determination of Entitlement to Reasonable Attorney[']s Fees and Courts Costs (Doc. # 26) filed on January 30, 2019. Defendant filed a Response in Opposition (Doc. # 27) and an Affidavit of David Gee in Support (Doc. # 28) on February 13, 2019. Also before the court is the Joint Stipulation For Order of Dismissal With Prejudice (Doc. # 29.)

Plaintiff seeks costs and attorney fees pursuant to Fed. R. Civ. P. 54(d), Fla. Stat. § 57.041, and Fla. Stat. § 626.9373. While defendant Scottsdale Insurance Company (defendant or Scottsdale) obtained jurisdiction in this Court by asserting plaintiff would be entitled to reasonable attorney fees if she prevailed (Doc. # 1, ¶ 7), it now asserts that plaintiff is entitled to no attorney fees or costs. Alternatively, Scottsdale asserts plaintiff is entitled *1252only to fees for a portion of the litigation. For the reasons set forth below, the motion for attorney fees and costs is granted as to entitlement, and granted in part and denied in part as to the amount of attorney fees and costs.

I. Procedural History

The record in this case establishes the following chronology: On October 9, 2016, plaintiff's residence suffered damage to its roof and interior due to heavy wind and/or rain in a storm. Plaintiff filed a claim under her insurance policy with Nationwide Insurance Company, which was underwritten by Scottsdale, a surplus lines insurer.

Scottsdale first received notice of plaintiff's claim on November 2, 2016. (Doc. # 28, ¶ 5.) By letter dated November 28, 2016, Scottsdale notified plaintiff that a portion of the claimed damage was not covered by its policy, and that an independent adjuster had inspected the damages and determined that the "roof leaked due to wear and tear, deterioration, and inadequate maintenance, which are excluded causes of loss." After deducting the $ 1,000 deductible and non-recoverable depreciation, Scottsdale issued a $ 7,218.69 check to plaintiff under separate cover. (Doc. # 28-3, p. 3.)

Plaintiff disputed Scottsdale's determination of the claim, and therefore Scottsdale continued to investigate the claim, including hiring an engineering firm. On March 28, 2017 Scottsdale made an additional payment to plaintiff in the amount of $ 6,564.01. On May 10, 2017, Scottsdale made another supplemental payment to plaintiff in the amount of $ 1,407.24 (Doc. # 28-5.) Plaintiff continued to dispute the sufficiency of these amounts.

On May 17, 2017, an attorney faxed a letter to Scottsdale notifying it of his representation of plaintiff. (Doc. # 28-6.) On May 19, 2017, plaintiff's attorney sent a letter to Scottsdale noting, among other things, that "there is obviously a disagreement between the parties" as to three specifically identified matters. Plaintiff's attorney requested that Scottsdale "reevaluate its inadequate initial payment" and "make payment within the next 14 days". (Doc. # 28-7.) Counsel included an estimate of damages in the amount of $ 60,161.49 from CNI Concepts Enterprises Inc.

By a reply letter dated June 6, 2017, Scottsdale rejected counsel's estimate, but noted that another $ 5,115.20 supplemental payment was issued. (Doc. # 28-9.)

On June 9, 2017, plaintiff's attorney sent a letter to Scottsdale noting plaintiff's continued disagreement and again requesting reevaluation and payment of more money within fourteen days. Because of an address error, Scottsdale asserts it did not receive this letter until June 17, 2017.

On June 27, 2017, plaintiff filed a lawsuit against Scottsdale in state court for breach of the insurance policy. (Doc. # 1-1, p. 4.)

By letter dated July 11, 2017, Scottsdale advised plaintiff that "no additional payment is due." Scottsdale also invoked the appraisal clause of the insurance Policy and appointed Brian Wasserman of Worley as its appraiser. (Doc. # 28-1, Exh. A.)

On July 17, 2017, plaintiff's attorney sent the Complaint and Summons to the Chief Financial Officer of the State of Florida, who then electronically delivered a copy to defendant on July 21, 2017. (Doc. # 1-1, p. 3.)

On August 18, 2017, defendant removed the case to federal court based upon diversity of citizenship (Doc. # 1) and filed a Motion to Compel Appraisal and Abate All Proceedings Pending Completion of Appraisal, or, in the Alternative, to Dismiss or Require a More Definite Statement *1253(Doc. # 3.) On August 30, 2017, the parties filed a Joint Motion to Abate All Proceedings Pending Completion of Appraisal (Doc. # 7), which was granted and the case was stayed (Doc. # 8.) The appraisal process did not go smoothly, and required court intervention. (Docs. ## 9, 10, 11, 12, 14, 18, 19, 20, 21, 22, 23, 24.)

On December 4, 2018, a $ 94,083.58 appraisal award was drafted and signed by defendant's appraiser and a neutral umpire. (Doc. # 26-3.) On December 26, 2018, Scottsdale sent checks for the full amount of the appraisal award, offset by the prior payments, to plaintiff's counsel. (Doc. # 24, ¶ 4.) The parties notified the Court on January 7, 2019, that the appraisal process was complete and they were exploring the possibility of settling remaining issues, including attorney fees. (Doc. # 24, ¶ 5.) The Court directed the parties to file a stipulation for dismissal and agreed that unresolved issues regarding attorney fees would be addressed after dismissal. (Doc. # 25.) On February 18, 2019, the parties filed a Joint Stipulation for Order of Dismissal With Prejudice (Doc. # 29).

II. Entitlement to Attorney Fees

When federal jurisdiction is based upon diversity of citizenship, a party's right to attorney's fees is determined by state law. Prime Ins. Syndicate, Inc. v. Soil Tech Distribs., Inc., 270 F. App'x 962, 963 (11th Cir. 2008) (citing All Underwriters v. Weisberg, 222 F.3d 1309, 1312 (11th Cir. 2000) ("[W]e hold that Fla. Stat. § 627.428 is substantive law for Erie 1 purposes.") ). The only basis for an award of attorney fees in this case is Fla. Stat. §

Related

All Underwriters v. Mark Weisberg
222 F.3d 1309 (Eleventh Circuit, 2000)
Erie Railroad v. Tompkins
304 U.S. 64 (Supreme Court, 1938)
Hensley v. Eckerhart
461 U.S. 424 (Supreme Court, 1983)
Blum v. Stenson
465 U.S. 886 (Supreme Court, 1984)
Crawford Fitting Co. v. J. T. Gibbons, Inc.
482 U.S. 437 (Supreme Court, 1987)
Federated Nat. Ins. Co. v. Esposito
937 So. 2d 199 (District Court of Appeal of Florida, 2006)
Travelers Indem. Ins. Co. v. MEADOWS MRI
900 So. 2d 676 (District Court of Appeal of Florida, 2005)
Goff v. State Farm Florida Ins. Co.
999 So. 2d 684 (District Court of Appeal of Florida, 2008)
NATIONWIDE PROPERTY & CAS. INSURANCE v. Bobinski
776 So. 2d 1047 (District Court of Appeal of Florida, 2001)
Jerkins v. USF & G Specialty Ins. Co.
982 So. 2d 15 (District Court of Appeal of Florida, 2008)
Wollard v. Lloyd's & Companies of Lloyd's
439 So. 2d 217 (Supreme Court of Florida, 1983)
Ivey v. Allstate Ins. Co.
774 So. 2d 679 (Supreme Court of Florida, 2000)
STATE FARM FLORIDA INS. CO. v. Lorenzo
969 So. 2d 393 (District Court of Appeal of Florida, 2007)
FIRST FLORIDIAN AUTO & HOME INS. v. Myrick
969 So. 2d 1121 (District Court of Appeal of Florida, 2007)
Ajmechet v. United Auto. Ins. Co.
790 So. 2d 575 (District Court of Appeal of Florida, 2001)
Pepper's Steel & Alloys, Inc. v. United States
850 So. 2d 462 (Supreme Court of Florida, 2003)
Lewis v. Universal Property & Casualty Insurance
13 So. 3d 1079 (District Court of Appeal of Florida, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
376 F. Supp. 3d 1249, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maloy-v-scottsdale-ins-co-flmd-2019.