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Legal Updates for Florida Coverage and Property Litigation

Second District Court of Appeals finds the trial court erred in granting summary judgment in favor of insured where she and carrier’s competing affidavits created a general issue of material fact which should have precluded summary judgment.

Michel Lassiter v. Citizens Property Insurance Company, Fla. 2d DCA, No. 2D2022-2609, May 29, 2024

July 1, 2024

Ms. Lassiter alleged that in April 2020, her home sustained damage when wind and hail damaged her roof, causing leaks and resulting in interior water intrusion damage. Citizens denied the roofing portion of the claim on the basis that the damage was the result of wear and tear, which was not covered under the insurance policy. Citizens also denied the interior damages and informed Lassiter that the policy did not provide coverage for water damage to the interior of the home unless an opening is first created by an insured peril through which the water enters. In response to Citizens’ denial, Lassiter filed a breach of contract action. 

Thereafter, Citizens filed a motion for summary judgment for the reasons outlined above. Along with its motion for summary judgment, Citizens included an affidavit from its corporate representative which incorporated findings of and photographs taken by the Citizens’ field adjuster who inspected the property after the claim was filed. According to the affidavit, the inspection report revealed that there were no signs of covered damage to the roof or exterior of the property and that, instead, there were signs of wear and tear to the roof and clogged gutters.

Lassiter filed a response to the motion for summary judgment and filed an affidavit of her expert, an engineer. The affidavit also attached the engineer’s report, containing an analysis of how high winds and hail can affect a roof, as well as the engineer’s opinion as to the cause of the damages. The engineer opined that within a reasonable degree of engineering certainty, the property was affected by high wind and hail that created openings to the exterior walls and roof, allowing water to enter and cause damage, and were consistent with direct and indirect wind damage, hail impact and moisture infiltration. The engineer further opined that the openings created by the wind and hail allowed moisture to enter the property. The engineer also eliminated wear and tear, marring, chipping, scratches, dents, or deterioration as the proximate cause of the damages and, instead, opined that it was the wind, wind-borne debris impacts and hail that were the proximate cause of the majority of the damages to the property.

The trial court determined that both the corporate representative’s and the engineer’s affidavits essentially resulted in a “tie” and were insufficient because they were not based on each individual’s own personal observations but were, instead, conclusions and analyses derived from other sources. As a result, the trial court essentially removed the affidavits from the summary judgment equation and focused on the remaining evidence, which consisted of the photographs, the summary of findings by the adjuster and Ms. Lassiter’s testimony, which they felt was so one-sided as to permit granting Citizens’ motion for summary judgment.

On appeal, the Second District Court of Appeal highlighted that it is improper to consider either the weight of conflicting evidence or the credibility of witnesses in ruling on a motion for summary judgment. They further went on to conclude the record suggests that the trial court erred in disregarding both Citizens’ and Ms. Lassiter’s affidavits because they resulted in a “tie.” The court underscored the fact that the trial court was not permitted to weigh the evidentiary value of the competing affidavits in determining whether summary judgment was appropriate; instead, these competing affidavits created a genuine dispute as to a material fact as to the cause of the damage to the roof of the property, which should have precluded granting Citizens’ motion for summary judgment. 

 

Legal Update for Florida Coverage & Property Litigation – July 2024 is prepared by Marshall Dennehey to provide information on recent legal developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. We would be pleased to provide such legal assistance as you require on these and other subjects when called upon. ATTORNEY ADVERTISING pursuant to New York RPC 7.1 Copyright © 2024 Marshall Dennehey, all rights reserved. No part of this publication may be reprinted without the express written permission of our firm. For reprints or inquiries, or if you wish to be removed from this mailing list, contact tamontemuro@mdwcg.com.

Firm Highlights

Thought Leadership

U.S. Supreme Court Decides Key Issue Regarding Interstate Freight Broker Liability

Freight brokers are intermediaries.  They connect shippers of goods with trucking companies that transport those goods.  Freight brokers match a load of freight with a trucking company and oversee the logistics of the transportation. For a number of years there has been a division among the Federal Circuits regarding the potential liability of freight brokers when the trucking companies that they retain for interstate loads are involved in accidents.  At the center of this division was the Federal Aviation Administration Authorization Act of 1994 (FAAAA).  Some Federal Circuit Courts have held that state law negligent hiring claims against freight brokers were preempted by the FAAAA .  Other Federal Circuits Courts have held that even if preemption applied, the “safety exception” in the FAAAA saved state law negligent hiring claims from federal preemption.  On May 14, 2026, the U.S. Supreme Court addressed the conflict in Montgomery v. Caribe Transport II, LLC, et al, No24-1238. In that case freight broker C.H. Robinson selected Caribe Transport to haul an interstate load. The commercial truck driver employed by Caribe Transport allegedly caused an accident and the plaintiff, Montgomery, was seriously injured. Montgomery brought an action against the driver, Caribe Transport and C.H. Robinson. The allegation against C.H. Robinson was that it negligently retained Caribe Transport when it knew, or should have known, that it was an unsafe company. The Seventh Circuit Court of Appeals held that Montgomery’s claims against C.H. Robinson were preempted by the FAAAA. The plaintiff appealed to the U.S. Supreme Court.  The U.S. Supreme Court’s decision focused primarily on the safety exception in the FAAAA.  That provision provides that the FAAAA preemption “…shall not restrict the safety regulatory authority of a State with respect to motor vehicles.” C.H. Robinson argued, as freight brokers historically have, that their function was not “with respect to motor vehicles” because they do not own trucks or employ drivers. They are merely intermediaries, connecting entities who need freight moved with entities who can do that job. Therefore, C.H. Robinson argued that preemption applied, not the safety exception. The U.S. Supreme Court did not accept that argument. The Court focused on the meaning of the phrase “with respect to” in the safety exception. The Court held that it means “referring to”, “concerning” or “regarding”. Therefore, writing for a unanimous Court, Justice Barrett concluded that “[r]equiring C.H. Robinson to exercise ordinary care in selecting a carrier therefore “concerns” motor vehicles—most obviously, the trucks that will transport the goods. So, Montgomery’s negligent-hiring claim falls within the FAAAA’s safety exception, which saves it from preemption.” Justice Kavanaugh, in his concurring opinion, noted the effect this ruling may have on freight brokers and their insurers throughout the country: Importantly, the Court's decision today should not be read to mean that brokers will routinely be subject to state tort liability in the wake of truck accidents. As even plaintiff's counsel stressed, brokers should be able to successfully defend against state tort suits if the brokers have acted reasonably and arranged transportation with reputable trucking companies. Tr. of Oral Arg. 27-29. In plaintiff's counsel's words, the brokers "just have to hire carriers that actually have a reasonable policy," and "the broker is not going to have a problem if it's asking the hard questions of the carrier." Id., at 42, 45. In addition, the proximate-cause requirement in typical state tort law should help protect brokers from excessive liability. Id., at 25. That said, the brokers rightly caution against naivete. In the real world, as the brokers forcefully respond, state tort law can be unpredictable, and the costs to brokers of litigation and insurance may be significant even when brokers prevail in lawsuits. Moreover, the costs of litigation and insurance, as well as the costs of brokers' conducting more substantial inquiries into trucking companies, will cascade through the economy and be paid in part by American consumers in the form of higher prices. The concerns expressed by the brokers are legitimate and weighty. The key point here is that freight brokers can no longer claim they are protected from negligent retention claims by the FAAAA (in cases involving interstate transportation). The challenge will be to determine what is considered ”reasonable efforts” used by brokers when retaining transportation companies. 

Event

29th Annual FDLA Florida Liability Claims Conference

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Result

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Thought Leadership

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