Cases
SELECTED CASE EXAMPLES Updated 1 05 2010
Case: Dadeland Depot, Inc. vs. St. Paul Fire and Marine Ins. Co.
Case: Title Insurance Class Actions
Case: Larose McLoyd vs. Barbara Dworak and National Indemnity Company of the South
The insurer of PAL was National Indemnity Company of the South, a Berkshire Hathaway subsidiary. Immediately they hired a local defense lawyer in Jacksonville.
National Indemnity Company of the South immediately conducted an investigation, including hiring an independent accident reconstruction expert, videotaping the intersection, and taking statements of witnesses, including the children on the PAL bus. PAL made attemps to contact our client, and they contacted our client's own insurer, Allstate to tag along at a "meet and greet" meeting with our client and her Mom just 19 days after the accident.
During that meeting, and a second meeting, 2 weeks later, they convinced our client to settle claims that she didnt't even know she had at the time. They induced her to settle the wrongful death claims for her husband and for her baby daughter for approximately $351,000 out of the $1 million dollar policy.
During the second meeting, our client's Mom, asked the Claims Supervisor and the attorney if her daughter needed to hire a lawyer, but they had already retained a local Jacksonville general practitioner attorney, and had probate forms ready, so they informed our client and her Mom that they had already hired a lawyer for her, and that they would pay the lawyer's fees. Just before the 90 days for probate ran, the lawyer for National Indemnity called the lawyer hired to probate the estates, and asked her to get our client to sign an "Affidavit of Waiver of Advice of Counsel" form. (Not find that form in the standard probate forms...)
Approximately 2 years later, our client was informed that the PAL driver had been speeding, and that he tested positive for drugs in his system. Our client then sought our advise.
In our pre-suit investigation we learned that the PAL driver was speeding, doing at least 47 mph in a 30 mile zone, and he had been cited for excessive speed. The bus driver also had to take a urin test, and he tested positive in the DOT screen for marijuana and cocaine. We also learned that there was foliage at the intersection that blocked view of both our client as well as the PAL bus driver.
Florida statutes mandate that insurers and their adjusters comply with the adjuster's code of ethics, which specifly precluded them from negotiating and settling with our client while she was in such distress from her loss.
We sued the cliams supervisor and the insurance company for one count, common law fraud. We litigated the case for 6 years both circuit and appellate courts. Much of the time was spent litigating the crime fraud exception, and spoliation of evidence issues.
In the discovery process, we were able to obtain several crucial pieces of documentation from the insurer's and attorney's file. Including a letter from the attorney to the regional claims supervisor, informing her that the accident reconstruction expert had determined that the accident wouldn't have occurred at all, if the driver had been going speed limit, and suggesting a "checkbook defense" to, prevent our client from contacting an attorney.
We worked with terrific co-counsel, David Dunlap, as well as our great appellate counsel, Philip Burlington. The case was tried before a Jacksonville jury over a 3 week period in November 2007, and the Jury rendered a verdict finding that the defendants committed fraud, and awarding $3 million to our client.
The case is presently on appeal
Case: Williams vs. Heritage Operating L.P., as successor in interest to Peoples Gas Company
In 1996, Mr. Williams entered into a contract with Peoples Gas to install Propane gas plumbing, an underground Propane gas tank and related equipment, and an LP gas water heater at his home. Under that contract Peoples Gas buried a Propane tank in his lawn that it owned. Nine years later, in March 2005, Heritage Operating, the successor in interest to Peoples Gas sent him an invoice charging him an annual tank rental fee of $60.00. Mr. Williams protested the tank rental to Heritage Operating, unsuccessfully. The contract says nothing about rent for the propane tank. When Heritage Operating succeeded Peoples Gas, Peoples Gas had 70,000 customers in Florida, each of those customers had the same identical contract, which silent as to any propane tank rent.
Mr. Williams filed this Class Action lawsuit to stop Heritage Operating from charging the 70,000 Peoples Gas customers with the same contract propane tank rent, and to force Heritage Operating to refund the tank rent that it had already charged the former Peoples Gas customers back to them.
After several years of litigation, the Trial Court granted Heritage Operating's Motion for Summary judgment, and Mr. Williams appealed to the Florida Second District Court of Appeals, who, on December 2, 2009, reversed the summary judgment. The case is now back before the trial court for continued litigation.
MEDICAL DOCTORS SUE HMOs FOR PAYMENT OF MEDICAL BILLS
Case: Westside EKG vs. Foundation Health, Health Options, and Humana Medical Plan SC05-870, SC05-871, 4D03-4837, Florida Supreme Court
In Westside EKG vs. Foundation, a group of Broward County medical doctors brought a class action lawsuit against several HMOs to recover payment on medical bills. Under Florida Laws, HMOs like those named in this lawsuit are required to “promptly” pay medical claims. The HMOs in this case argued that no private right existed to sue in court for unpaid medical claims under Florida’s HMO Law and that at best, medical providers like Westside EKG can only seek recovery through a state administrative process rather than sue in court. Westside has argued that the HMOs insurance plan document itself requires it to follow the law and “promptly” pay medical claims. Westside EKG further argued that it is a third party beneficiary of the HMO plan since it rendered medical services to patients in the HMO Plan, therefore, it should be entitled to sue under common law theories. The Fourth District Court of Appeal ruled in favor of Westside EKG and reversed a judgment on the pleadings in favor of the HMOs. The Florida Supreme Court affirmed ruling in favor of Westside EKG. The Florida Supreme Court stated that a medical service provider can bring a lawsuit against an HMO for failure to promptly pay claims.
LAWSUIT FILED AGAINST THE NATION’s 5th LARGEST HOUSING PROVIDER FOR DISCRIMINATING AGAINST FAMILIES WITH MINOR CHILDREN
Milsap, Fair Housing Center of the Greater Palm Beaches (FHC), Housing Opportunities Project for Excellence, Inc. (HOPE), vs. Cornerstone Residential Management, Inc., et. al.,
Case: 05-60033-CIV, Judge Marra, United States District Court Southern District of Florida
Miami Resident, Terri Milsap and her two young boys, along with several other single moms, HOPE of Miami, and the Fair Housing Center of the Greater Palm Beaches have filed a class action lawsuit against Cornerstone Residential Management company for discriminating and refusing to rent apartment units to families with minor children at 52 different apartment complexes all over Florida. Cornerstone’s representatives discouraged families with minor children from renting and limited the number of children who may live in apartment buildings. Such discrimination violates the Federal Fair Housing Act of 1968. Cornerstone’s position is that such discrimination did not occur at all 52 complexes and that due to certain green space requirements, limited space and plumbing requirements, it could not enforce the minimum requirements of the law. Milsap, HOPE, and the FHC have discovered that Cornerstone received ½ billion dollars in federal government tax dollars (credits) to develop its residential rental properties and promised the federal government that it would in turn market its rental units to families with children and low-income families. Since the time the lawsuit was filed, Cornerstone has changed its occupancy policies in favor of families with minor children. The case is pending before Judge Marra.
FRANCES VICTIMS WIN PROPERTY INSURANCE CASE
KELSO v. UNIVERSAL PROPERTY & CASUALTY
Patrick and Carolyn Kelso’s modest Stuart home was destroyed by Hurricane Frances and Universal Property and Casualty Insurance did not want to pay the price. Last week, on Wednesday April 19th, they became one more example of ordinary people, victim’s of natural disasters in Florida, that have to fight to get what is their due. The good news? Following a three-day trial, a Martin County jury decided in less than an hour that Universal Property & Casualty must pay the Kelsos for damages to their home caused by Hurricane Frances. As you may recall, on September 4, 2004 this category two Hurricane pounded the Martin County area for nineteen hours. Hurricane Frances lifted the home off the foundation and dropped it back down several times, causing the whole foundation to be twisted and racked. Both the engineer and contractor declared it a total loss. Big Insurance disagreed”
The monster hurricane also ripped the aluminum siding off the home and revealed a 3 foot section of termite-damaged wood. Universal Property & Casualty alleged this three-foot area was “load bearing.” In other words, the carrier denied the Kelso’s claim for over two years, alleging that the foundation was damaged before Frances by the termites. Anexpert engineer, reporting in defense of the Kelso’s testified convincingly that the house was a total loss and the cause was, undoubtedly, Hurricane Frances. Benrubi, argued that the two termite damaged boards, which measured only several feet in length, were not structurally supporting the house and had no effect, direct or indirect, on the damage the house sustained following the hurricane.
TRAVELERS INDEMNITY CO. OF ILLINOIS v. MEADOWS MRI, INC.
The firm represented MEADOWS MRI, LLP, MEADOWS, Inc. center of Boca Raton whose only scanner was destroyed when an explosion within the magnet caused a loss of the magnetic field. Meadows property insurer, Travelers Indemnity, initially denied coverage for the claim and subsequently demanded appraisal to determine the disputed amount of the loss. The trial court awarded Meadows its attorneys’ fees after the firm obtained a significant appraisal award in Meadows favor. Travelers appealed the attorneys’ fee award. The Fourth District Court of Appeal affirmed the fee award, while again recognizing an insured’s right to an attorneys’ fee award upon prevailing in appraisal.
MATHEWS v. AUTO-OWNERS
The firm represented the Mathews who were subject to a $13.8 million dollar judgment resulting from a tragic car accident that left the injured victim a paraplegic. Kelly Matthews and the injured victim were close friends and college roommates at the time of the accident some eight years earlier, but had not spoken since. The firm, brought a bad faith action against Mathews’ automobile insurer, Auto-Owners, alleging their bad faith claims handling caused them to be exposed to the multi-million dollar judgment. The firm successfully negotiated a confidential settlement with Auto-Owners, the result of which generated funding for the lifetime of medical care required by the injured victim and also satisfied the judgment against our clients. This settlement also served as the basis for satisfying a several hundred thousand dollar restitution order entered against Kelly Mathews, now clearing the way for Kelly to obtain her nursing license, and reestablished a severed relationship for old friends.
LAWSUIT FILED AGAINST DELRAY BEACH CONDO ASSOCIATION FOR RACIAL DISCRIMINATION AGAINST WIDOWED BLACK FEMALE
Case: Thomas and Fair Housing Center of the Greater Palm Beaches, Inc., vs. High Point of Delray, Section 1, 05-81040-CIV, Judge Hurley, United States District Court Southern District of Florida
Sometime in July 2006, West Palm Beach Resident Elois Thomas was selling her marital home as her husband passed on, and was seeking to buy a condo in Delray Beach close to her family to live out her retirement days. Mrs. Thomas signed a real estate contract to buy a condo unit in High Point of Delray, Section One for $127,000 cash. Mrs. Thomas submitted her residency application to the Condo Association and awaited her interview. However, the President of the Association, Charles Jordan, rejected her application and returned it to the seller’s realtor stating “she’s black, and blacks are not accepted here” and that he would “stall the application process so that she would be discouraged enough to move on.”The seller’s realtor reported Mr. Jordan and the Association to the Fair Housing Center of the Greater Palm Beaches, who in turn, brought a lawsuit for racial discrimination under the Federal Fair Housing Act of 1968. On the eve of trial, the Association agreed to a settlement of $150,000. Since the time of the discrimination, Mrs. Thomas was able to secure another condo unit in Section Six, High Point of Delray, free of discrimination.
DENTIST/PATIENT SUES HEALTH INSURANCE COMPANY TO FORCE PAYMENT OF MEDICAL BILLS
Case: Chace v. Medical Savings Insurance Company, 03-258, Judge Makemson, Martin County, Florida
The Chaces, both dentists themselves, were insured for health insurance with Medical Savings Insurance Company. After being admitted in the hospital to remove benign tumors, Jennifer Chace’s insurance company failed to fully pay her hospital bills. As a result, the Chaces’ were sued by their hospital for the unpaid bills. Medical Savings paid only a portion of the Chaces’ hospital bills and reduced the payments based on an undisclosed formula not contained in the insurance policy. The Chases’ filed a class action lawsuit against Medical Savings to require it to pay the hospital’s usual and customary charges. The Chases’ also sued claiming that the insurance policy failed to meet the requirements of Florida’s Out of State Group Insurance Laws and the payment formula used by Medical Savings was not disclosed in the insurance policy. The Chaces’ lawsuit is brought on behalf of all insureds in Florida who treated in Florida hospitals and whose bills were not paid or partially paid under the insurance contract. This class action lawsuit was certified and the Fourth District Court of Appeal affirmed the trial court’s certification order.
