VVG Real Estate Invs. v. Underwriters at Lloyd's

317 F. Supp. 3d 1199
CourtDistrict Court, S.D. Florida
DecidedJuly 31, 2018
DocketCase No. 18-cv-61237-BLOOM/Valle
StatusPublished
Cited by14 cases

This text of 317 F. Supp. 3d 1199 (VVG Real Estate Invs. v. Underwriters at Lloyd's) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
VVG Real Estate Invs. v. Underwriters at Lloyd's, 317 F. Supp. 3d 1199 (S.D. Fla. 2018).

Opinion

BETH BLOOM, UNITED STATES DISTRICT JUDGE

THIS CAUSE is before the Court upon the Motion to Dismiss Complaint filed by Defendants, Certain Underwriters at Lloyd's, London Subscribing to Certificate No. NA171157 (collectively, "Underwriters" or "Defendants") on June 5, 2018. ECF No. [3] (the "Motion"). The Court has carefully reviewed the Motion, all opposing and supporting materials, the record in this case and the applicable law, and is otherwise fully advised. For the reasons set forth below, the Motion is granted.

I. PROCEDURAL POSTURE

Plaintiff originally filed its Complaint, ECF No. [1-2] ("Complaint"), in the Circuit Court of the Seventeenth Judicial Circuit in Broward County, Florida on March 21, 2018. In its Complaint, Plaintiff alleges two breach of contract claims. Count I alleges that Defendants breached the contractual terms and conditions of the Plaintiff's homeowners insurance policy (the "Policy") by refusing to pay for Plaintiff's loss after Hurricane Irma. ECF No. [1-2] ¶ 21. Count II alleges that Defendants breached the Policy by failing to make a determination of coverage by either making payment or denying the claim within *120290 days of receiving notice. ECF No. [1-2] ¶ 23.

On June 4, 2018, Defendants filed their notice of removal, pursuant to 28 U.S.C. § 1441 with this Court. ECF No. [1]. Defendants assert that there is a valid arbitration clause within the Policy that falls under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards ("the Convention"), invoking jurisdiction pursuant to 9 U.S.C. §§ 202, 203 and 205. Defendants then filed their Motion, again raising the defense that the agreement requires arbitration of this dispute under the Convention. Plaintiff timely filed its response arguing that Defendants have failed to state what claims they seek to arbitrate, and that the Policy issued by Defendants is governed by Florida law. As such, the Federal Arbitration Act ("FAA") does not apply. ECF No. [10]. By timely reply, Defendants maintain that the arbitration clause prevails over state law to the extent that the FAA incorporates an agreement the United States made with other nations. ECF No. [11].

II. FACTUAL BACKGROUND

Plaintiff is a real estate investment corporation and the owner of properties located at 310 McKinley Street, Hollywood, FL 33019 and 2012 North Surf Road, Hollywood, Florida 33019 (the "Properties"). ECF No. [1-2] ¶ 2. Plaintiff alleges that Plaintiff and Defendants are parties to a homeowners insurance policy issued by the Defendants, policy number NA171157 ("the Policy"). Id. at ¶ 6. According to the Plaintiff, under the terms of the Policy, the Defendants have agreed to provide insurance coverage to the Properties against certain covered losses. Id. at ¶ 8. The Policy also contains the following provisions:

11. Legal action against Underwriters
No one may bring a legal action against the Underwriters under this Policy unless:
1. There has been full compliance with all of the terms of this Policy; and,
2. the action is brought in the United States of America, in a court having proper jurisdiction, within 2 years after the date on which the direct physical loss or damage occurred.
12. Arbitration
If the Assured and Underwriters fail to agree in whole or in part regarding any aspect of this Policy, each party shall, within ten (10) days after the demand in writing by either party, appoint a competent and disinterested arbitrator and the two chosen shall before commencing the arbitration select a competent and disinterested umpire. The arbitrators together shall determine such mattes in which the Assured and the Underwriters shall so fail to agree and shall make an award thereon, and if they fail to agree, they will submit their differences to the umpire and the award in writing of any two, duly verified, shall determine the same.
The Parties to such arbitration shall pay the arbitrators respectively appointed by them and bear equally the expenses of the arbitration and the charges of the umpire.

ECF No. [3-1] at 26.

Plaintiff alleges that on or around September 10, 2017, one of the Properties was damaged by strong winds as a result of Hurricane Irma. Id. at ¶ 9. Plaintiff claims that due to the damages, the units in the Property were uninhabitable and unrentable, causing Plaintiff to suffer $248,878.40 in lost income. Id. at ¶ 14. According to the Complaint, Defendants failed to make a determination of coverage and failed to pay the amounts requested for the damaged *1203Properties pursuant to the terms of the Policy. Id. at ¶ 19. Plaintiff alleges that as a result of Defendants' failures, it continues to lose income due to the damages suffered by Defendants' failure to act within a reasonable amount of time. Id. at ¶ 25.

III. LEGAL STANDARD

The FAA applies to this case, and the Plaintiff has failed to provide any authority at all in support of its inapplicability, or in support of any of its other arguments.1

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Bluebook (online)
317 F. Supp. 3d 1199, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vvg-real-estate-invs-v-underwriters-at-lloyds-flsd-2018.