Interlocutory Appeal in Declaratory Action Denied Because Facts of All Counts Were Intertwined

Universal Underwriters Ins. Co. v. Stathopoulos & W. Gen. Insurance Co. (Fla. 2d DCA 2013)

Shortly after a woman drove a newly-purchased car off a dealership lot, her application for financing was rejected and she was instructed to return the car to the dealership. Before she could do so, the car was involved in an accident that resulted in the death of another person.

Western General Insurance Company (“WG”) defended and indemnified the driver in that action, which resulted in a $3 million consent judgment and an assignment of any proceeds of any causes of action against Universal Underwriters Insurance Company (“Universal”), the insurer that had written the dealership’s “garage” policy. Although Universal had declined coverage for the wrongful death suit, it was potentially responsible for coverage because, absent financing, the car arguably belonged to the dealership while in the driver’s possession.

A three-count suit was filed against Universal for (i) declaratory relief; (ii) breach of contract; and (iii) bad faith. As to the count for a declaratory relief, the trial court entered an order declaring that the driver was an insured under Universal’s policy. Although the counts for breach of contract and bad faith remained pending, Universal filed an appeal. The second district dismissed the appeal without reviewing the merits explaining that “[b]ecause the amended complaint reflects that the three counts are based on the same facts and are intertwined, … allowing an appeal of the declaratory count at this stage would foster impermissible piecemeal review.”

Explore posts in the same categories: Bad Faith, Declaratory Action, New Florida Insurance Coverage Cases

Tags: Appeals, Bad Faith, Consent Judgment, Declaratory Action

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