Judge rules new law doesn’t apply because AOB signed before law took effect

Broward Circuit Judge Keathan Frink refused to rule on the constitutionality of the new law that blocks payment of attorney fees to third parties.

Florida's new assignment of benefits law doesn't apply to a contractor's lawsuit against an insurer since the assignment of benefits (AOB) happened before the statute was enacted, Daily Business Review reported.

MAC Legal’s Michael Citron and Igor Hernandez brought a case for plaintiff KDH Architecture in November 2019, which alleged $916,000 in repairs caused by Hurricane Irma to Sun Vista Gardens Condominium Association in Tamarac were wrongly denied by the defendant.

The condo association made an AOB transfer to KDH in August 2018. But Florida’s new AOB law went into effect July 1, 2019.

United Property & Casualty’s attorney Otto Espino of Kelley Kronenburg in Miami asked for dismissal on grounds that the plaintiff allegedly hadn’t let the carrier examine the claims under oath, Daily Business Review reported.

“They are not coming to United and asking for benefits for services already rendered, for tasks that have been completed, for consumables that have been consumed. They’re basically saying they want $916,000 dollars prospectively for all the repairs they think they believe the property’s going to need for damages that they contend are related to Hurricane Irma,” Espino told Daily Business Review.

Frink disagreed during the hearing held via Zoom, Daily Business Review reported. He denied the dismissal motion and the request to reject attorney fees. But he did say allegations over the plaintiff’s meeting contractual obligations could be subject for a future summary judgment decision.

Citron and Hernandez said the insured and assignee – in this case KDH and the condo association – have different rights under the new law despite being parties to one contract, which they allege violates the state’s equal-protection clauses in its Constitution

“Now, as an assignee, you’re basically a second-class citizen,” Hernandez told Daily Business Review.