B. VIRGIL MILLER AND MYRTLE MILLER, APPELLANTS,
v.
FIRST SERVICE CORPORATION OF THE FLORIDA KEYS, A FLORIDA CORPORATION, UNITED STATES FIRE INSURANCE COMPANY, A FOREIGN INSURANCE CORPORATION AND FLORIDA WINDSTORM UNDERWRITING ASSOCIATION, A STATUTORY INSURANCE ASSOCIATION, APPELLEES
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An insurance broker failed to timely forward an application for windstorm insurance, resulting in a house being damaged before coverage was issued. The appellants won a jury verdict for the full policy amount but were denied prejudgment interest by the trial court. The appellate court reversed, holding that the plaintiffs were entitled to prejudgment interest as a benefit of the policy they would have received.
The court held that the plaintiffs were entitled to prejudgment interest commencing 60 days from the filing of a proof of loss, as this interest would have been a benefit recoverable under the insurance policy if it had been properly issued.
[1] A plaintiff may recover prejudgment interest when the defendant's failure to procure insurance caused the plaintiff to lose the benefits of the policy, including interest…
[2] Prejudgment interest on an insurance claim may commence 60 days from the filing of a proof of loss, even if the policy was never issued due to the broker's negligence.
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Join FLexlaw to unlock all legal intelligence“The failure of the defendant's insurance broker to secure the issuance of the insurance policy caused the plaintiffs to lose the benefits provided in the applied for policy. One of the benefits, upon a recovery, was interest on the amount claimed commencing 60 days from the filing of a proof of loss.”
Establishes the core principle that interest on claims is a recoverable benefit of the insurance policy that the broker failed to procure
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Join FLexlaw to unlock all legal intelligenceThe Millers built a vacation house on stilts in the Florida Keys and applied for windstorm insurance through First Service Corporation on April 15, 19…
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PER CURIAM.
Appellants seek review of an order denying their motion for prejudgment interest.
The plaintiffs built a vacation house on stilts in the Florida Keys. They went to First Service Corporation of the Florida Keys [First Service] to procure windstorm insurance on the house. Coverage was not to be effective until the risk was accepted. The insurance was applied for on April 15, 1980, and the application carried an effective date of April 25, 1980. First Service failed to timely forward the application and on April 27, 1980, a windstorm blew the house off its pilings prior to the application being received by the insurer. A policy was not issued. The plaintiffs then filed a complaint against the broker for failure to procure insurance. The jury found for the plaintiffs, awarding them the full amount of the policy not issued. Thereafter the trial court entered the order appealed denying prejudgment interest. We reverse.
The failure of the defendant’s insurance broker to secure the issuance of the insurance policy caused the plaintiffs to lose the benefits provided in the applied for policy. One of the benefits, upon a recovery, was interest on the amount claimed commencing 60 days from the filing of a proof of loss. See & compare Jackson Grain Co. v. Hoskins, 75 So. 2d 306 (Fla.1954); Warren v. Old Dominion Insurance Co., 465 So. 2d 1376 (Fla. 5th DCA 1985); Kennedy v. George Cully Real Estate, Inc., 336 So. 2d 484 (Fla. 3d DCA 1976); Tech Corporation v. Permutit Company, 321 So. 2d 562, 563 (Fla. 4th DCA 1975); English and American Insurance Company v. Swain Groves, Inc., 218 So. 2d 453 (Fla. 4th DCA 1969); Greenfield v. Insurance, Inc., 97 Cal.Rptr. 164, 19 Cal.App.3d 803 (1971).
We therefore reverse the order under review and remand the matter to the trial court to award the plaintiffs’ interest on the final judgment commencing 60 days from the filing of the proof of loss.
Reversed and remanded.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
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D.R. Mead & Co. v. Cheshire OF Fla., Inc., 489 So. 2d 830 (Fla. 3d DCA 1986)…of harmful evidentiary error on this issue. .We find no merit in either the appellants’ challenge to the award of pre-judgment interest, National Union Fire. Insurance Co. v. Gelfand, 477 So. 2d 28 (Fla. 3d DCA 1985); Miller v. First Service Corp., 471 So. 2d 1332 (Fla. 3d DCA 1985), or Cheshire’s claim to attorney’s fees. See American Home Assurance Co. v. City of Opa Locka, 368 So. 2d 416 (Fla. 3d DCA 1979).…
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Biscayne Supermarket, Inc. v. The Travelers Ins. Co., 485 So. 2d 861 (Fla. 3d DCA 1986)…ccessful at the new trial, they are entitled to prejudgment interest from the date that the proceeds would have been due under the policy. National Union Fire Insurance Co. v. Gelfand, 477 So. 2d 28 (Fla. 3d DCA 1985); Miller v. First Service Corp., 471 So. 2d 1332 (Fla. 3d DCA 1985); see also Argonaut Insurance Co. v. May Plumbing Co., 474 So. 2d 212 (Fla.1985). Reversed and remanded.…
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Taylor v. N.H. Ins. Co. of Manchester, 489 So. 2d 207 (Fla. 2d DCA 1986)…with instructions to enter an amended final judgment awarding appellants prejudgment interest from the date that the proceeds would have been due under the policy, i.e., sixty days from the filing of the proof of loss. Miller v. First Service Corp., 471 So. 2d 1332 (Fla. 3d DCA 1985). Affirmed in part, reversed in part, and remanded. GRIMES, A.C.J., and SCHEB, J., concur.…
Previewing 3 of 7 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- English & Am. Ins. Co. Ltd. v. Swain Groves, Inc., 218 So. 2d 453 (Fla. 4th DCA 1969)
- Jackson Grain Co. v. Hoskins, 75 So. 2d 306 (Fla. 1954)
- Tech Corp. v. The Permutit Co., 321 So. 2d 562 (Fla. 4th DCA 1975)
- Warren v. OLD Dominion Ins. Co., 465 So. 2d 1376 (Fla. 5th DCA 1985)
- Kennedy v. George Cully Real Est., Inc., 336 So. 2d 484 (Fla. 3d DCA 1976)