Insured Entitled to Attorney’s Fees For Cost of Improper Deduction of Depreciation by Insurer in Wind Damage Claim

Sunshine State Ins. Co. v. Davide  (Fla. 3d DCA 2013)

Underlying this case is a claim for wind damages pursuant to an insurance policy. The damages were submitted to appraisal, but based on the award’s wording, the insurer was unsure whether the award had already taken into account deductions for depreciation.

When the insurer was unable to receive clarification on this issue, it presumed that depreciation had not been factored in and thus deducted from the award the amount that it unilaterally concluded would be the amount of depreciation.  The insured then filed a complaint against the insurer for breach of contract, bad faith, and to confirm the appraisal award.

Then, after the insurer received a letter from the appraiser noting that depreciation had already been deducted, the insurer paid its insured the depreciation amount it had previously withheld. Multiple motions and pleadings ensued, including the insured’s motion for attorney’s fees and costs for having recovered the depreciation payment.

The trial court granted the motion and held an evidentiary hearing to determine the appropriate amount. The trial court, in a very detailed order, awarded 150 hours at $450.00 per hour plus a multiplier of 2.0 with costs and expert fees. The third district affirmed the order, declining to find an abuse of discretion particularly since the trial court had concluded that the 150 hours “were necessary and crucial to reaching the results that were obtained.”

Explore posts in the same categories: First Party Property, New Florida Insurance Coverage Cases

Tags: Attorney's Fees, First Party Property, Property Damage Claim

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