Florida court denies homeowners' request for legal fees after Hurricane Ian dispute

According to court documents, the case began after Hurricane Ian struck southwest Florida in October 2022, causing significant structural and water damage to Reed and Lonngren’s home. Citizens Property Insurance Corporation, a state-backed insurer, responded promptly, initially issuing a claim payment of $11,101.19. Dissatisfied with this amount, the homeowners submitted an estimate from their own contractor totaling $157,727.00. Citizens conducted further inspections, reissued previous payments upon request, and made additional payments. By June 1, 2023, Citizens had sent a final interim payment.

Just over a week later, the homeowners notified Citizens of their intent to file a lawsuit. Citizens responded by invoking the insurance policy's appraisal clause, which mandates an out-of-court process to resolve disputes over the value of damages. Each side selects an appraiser, and the two appraisers select a neutral umpire to resolve any lingering disagreements. However, both parties were unable to agree on an umpire, with Citizens claiming that the plaintiffs’ appraiser would only accept candidates of his own choosing.

Despite the ongoing appraisal process, Reed and Lonngren filed a breach of contract lawsuit on September 26, 2023, alleging that Citizens had failed to complete the appraisal within 90 days as dictated by Florida law. The circuit court paused the suit, directing the parties to resolve the umpire impasse, which they eventually did. Once the appraisal was completed, a binding award was issued in the homeowners’ favor and Citizens paid the agreed amount within the 60 days specified by the insurance contract.

After Citizens fulfilled the appraisal award, both sides requested summary judgment. The plaintiffs asserted that Citizens’ additional payment was a legal “confession of judgment,” entitling them to pre-judgment interest and legal fees. Circuit Judge Kyle Cohen found that Citizens had complied with the policy terms and denied these requests. The homeowners appealed, but the Sixth District Court of Appeal ruled unanimously in Citizens’ favor. Judge Meredith L. Stargel, writing for the panel, noted that the confession of judgment rule does not apply when an insurer acts in good faith and follows the contractual claims process. She stated, “There was no breakdown in the claims adjusting process, and Appellants’ lawsuit was not a necessary catalyst to resolve the dispute.”

The panel also clarified that while Florida law allows homeowners to sue if an appraisal is not completed within 90 days, the statute does not impose a hard deadline for the completion of the appraisal process itself. Judges Jared E. Mize and John K. Gannam concurred with the opinion, leaving in place the lower court’s decision in favor of Citizens Property Insurance Corporation.