.

Estelle Kokales McGrath

Supervisor, Professional Liability - Western Pennsylvania

Chair, Real Estate E&O Liability Practice Group

Portrait of Estelle Kokales McGrath

Estelle is a Shareholder in the firm’s Professional Liability Department and serves as Supervisor of the Professional Liability Practice Group in Western Pennsylvania, where she oversees the operations and strategic direction of the Professional Liability attorneys in the firm’s Pittsburgh, Erie, Cincinnati, and Cleveland offices.  Her practice focuses on various miscellaneous professional liability matters, including errors and omissions, directors and officers liability and management liability.

Insurance Agents & Brokers Liability.  A significant portion of Estelle’s practice is dedicated to defending errors and omissions claims against insurance agents and brokers.  She represents agents and brokers of all sizes in both pre-suit matters and litigation and is skilled at managing the complex relationships among agents, insureds, and insurance carriers.

Real Estate E&O Liability.  As Chair of the firm’s Real Estate Errors and Omissions Liability Practice Group, Estelle represents real estate agents and brokers, appraisers, home inspectors, property management companies, homeowner associations, boards, and individual board members. Her work frequently involves detailed analysis of contracts, association governing documents, and the Uniform Planned Community Act.

Public Entity and Civil Rights.  Estelle also maintains a robust practice in public entity and civil rights defense.  She represents municipalities, school districts, universities, and other public entities, as well as police chiefs, police officers, constables, humane officers, volunteers, security personnel, and educators – including teachers, professors, and coaches– in a wide range of professional liability and civil rights matters.

Employment Law.  In the employment law arena, Estelle counsels employers pre-suit and defends public entities and private companies in claims alleging discrimination and retaliation, in addition to whistleblower claims and allegations of sexual assault.  She frequently appears before the EEOC and PHRC and continues representation through litigation in state and federal courts. She also previously served as a pro bono mediator for the Equal Employment Opportunity Commission.

Estelle also recently served a two-year term on the firm’s Executive Committee Advisory Council, a select group of firm leaders dedicated to strengthening communication between the Executive Committee and associates, special counsel, and junior shareholders.

    • Widener University Delaware Law School (J.D., 2001)
    • Juniata College (B.A., 1998)
    • Pennsylvania, 2001
    • West Virginia, 2011
    • U.S. District Court Southern District of West Virginia, 2011
    • U.S. District Court Western District of Pennsylvania, 2011
    • U.S. District Court Northern District of West Virginia, 2017
    • Pennsylvania Super Lawyer Rising Star (2008, 2012-2016)
    • Allegheny County Bar Association
    • Council on Litigation Management
    • FETA 2013-present
    • Pennsylvania Bar Association
    • Professional Liability Underwriting Society (PLUS) 2013-present
    • West Virginia Bar Association
    • Navigating Real Estate Claims from New York to New Jersey and Pennsylvania, Client Seminar, May 2026.
    • Anti-Harassment, Anti-Discrimination and Anti-Bullying /Workplace Conduct, Client Seminar, August 2025
    • Prohibition Against Discrimination and Harassment, Client Seminars, June 2025
    • Insurance Agent and Broker Webinar, Philadelphia Insurance Company, April 1, 2025
    • Risk Management for Insurance Agents & Brokers, Pittsburgh I-Day, October 8, 2024
    • How to Avoid Mistakes with Mismanagement of Life & Health Claims, Joint Webinar with National Association of Professional Agents, May 2023
    • Pandemic Coverage Litigation Update / Insurance Broker Best Practices, Client Webinar, September 2022
    • The Aftermath of the Pandemic For Carriers and Agents, Client Webinar, July 2021
    • Civil Litigation Updates in COVID-19 Litigation – Where Do We Stand One Year Later? Marshall Dennehey Webinar, May 2021
    • Supervisor Training on Discrimination, Client Seminar, June 2021
    • Impact of COVID-19 on Insurance Agents, Client Webinar, May 2021
    • Pandemic Coverage Litigation Update: Agent E & O Wars to Come, Client Webinar, March 2021
    • Pregnancy Discrimination, Client Seminar, March 2020
    • Promoting Diversity & Inclusion, Client Seminar, November 2019
    • Police:  Handling Critical Incidents, Client Seminar, May 2018
    • "Lessons From Accountant's Age Discrimination Suit," Pennsylvania CPA Journal, Spring 2024
    • "EEOC Mediation: Five Things to Consider Before Participating,"The Legal Intelligencer, Employment Law Supplement, October 2023
    • "Top 10 Ways an Insurance Broker Can Avoid Liability," National Association of Professional Agents, March 1, 2023
    • "Top Ten Ways an Insurance Broker Can Avoid Liability,"Legal Update for Insurance Agents & Brokers, December 21, 2022
    • “HOA Living. It Is Not For Everyone,” Defense Digest, June 2021, Vol. 27, No. 3
    • "Ten Ways An Employer Can Reduce Their Chances of Being Sued for Discrimination,"PLUS Blog, May 10, 2021
    • “HOA Living. It Is Not For Everyone.,” Defense Digest, March 2021, Vol. 27, No. 2
    • "House Bill No. 88 to be Signed by Governor Rendell," What's Hot in Workers' Comp, Volume 7, No. 12, December 2003
    • "Supreme Court Reverses Caso Decision," What's Hot in Workers' Comp, Volume 7, No. 12, December 2003
    • "Course of Employment Argument Saves Employer," Defense Digest, Volume 9, No. 2, June 2003
    • "Board's Decision Reversed Where Claimant Failed to Present Evidence," Lawyers Journal, The Journal of the Allegheny County Bar Association, June 27, 2003
    • "Borough of Lewistown v. Pennsylvania Labor Relations Board: The Supreme Court of Pennsylvania Holds Arbitration Award Final and Binding When Participating Joint Employer Failed to Appeal the Award," 9 WIDENER J. PUB. L 615 (2001).
    • Voluntary Dismissal of Insurance Agency and Agent, August 19, 2026. A client of the agency (plaintiff) filed a complaint in the Court of Common Pleas of Fayette County, Pennsylvania alleging that the agent and agency failed to properly insure his commercial property. After a storm caused damage to the property, the insurance company denied coverage for one of the structures because it was not included under the insurance policy. The plaintiff alleged that it told the agent about the structure and requested that it be included on the policy.  The plaintiff set forth various claims including negligence. During the corporate representative deposition, the plaintiff reluctantly admitted that the allegations in the complaint were false.  After providing the plaintiff with a motion for sanctions, it voluntarily dismissed the complaint with prejudice.
    • Secured Favorable Decision for Real Estate Agent from Pennsylvania Association of Realtors After Ethics Hearing, August 13, 2026. The prospective buyers’ real estate agent filed an ethics complaint against the listing real estate agent alleging a violation of Article 10 of the Ethics Code.  Article 10-5 references duties to the public and prohibits REALTORS® from denying equal professional services to any person based on race.  REALTORS® are prohibited from planning or agreeing to discriminate against a person based on race. After submitting a substantive response and producing evidence, a hearing was held before a Hearing Panel, which included an opening statement, presentation of witnesses along with cross-examination of witnesses presented by the buyers’ agent and a closing statement. After consideration of all the evidence, the hearing panel found that there was no violation of the Ethics Code and dismissed the Complaint.
    • Motion to Dismiss Granted with Prejudice for Borough and its Employees, March 26, 2026. An owner of a sexually oriented business, who did not own property in the Borough, but periodically booked events in the Borough, was prohibited by a permanent injunction from performing at a particular restaurant due to a zoning ordinance violation. Plaintiff then brought a Section 1983 action alleging that defendants violated his rights under the First Amendment, Fourteenth Amendment and Equal Protection Clause.  After filing a motion to dismiss arguing that the plaintiff lacked standing, the Court agreed and explained that plaintiff had no legally recognized property right in the Borough.  The Court further explained that the state proceedings were between the Borough and the restaurant – against whom the injunctions were directed – not plaintiff.  The lack of standing was fatal to all of his claims and his case was dismissed with prejudice.
    • Secured Voluntary Dismissal of Suit Against Domestic Violence Entity and its Employees, February 20, 2026. An individual, who had never received services and who had never been an employee, sued a domestic violence entity along with several of its employees alleging various claims including negligence, emotional distress, defamation, civil conspiracy, and retaliation.  After filing preliminary objections attacking the entire complaint as legally insufficient and arguing that the court should view the complaint as potentially violative of a protection from abuse order (which was available on the public docket), the plaintiff withdrew the complaint. 
    • Summary Judgment For Child Care Center In Employment Case, November 19, 2025. We obtained summary judgment on behalf of a child care center in an employment discrimination action brought by two former employees. Plaintiffs alleged multiple claims arising from their termination, including age and race discrimination and unlawful interference with leave, in violation of the Age Discrimination in Employment Act (ADEA), the Pennsylvania Human Relations Act (PHRA), Title VII, Section 1981, and the Family and Medical Leave Act (FMLA).  The Court agreed that Plaintiffs failed to establish a prima facie case of age discrimination, as they could not show they were replaced by sufficiently younger employees to support an inference of discriminatory animus.  Plaintiffs likewise failed to meet their burden on their race discrimination claims, as they did not demonstrate that the employer retained similarly situated employees who were not within the protected class.  Finally, the Court rejected Plaintiff’s FMLA interference claim, finding that the employee voluntarily ended her leave and that the employer would have continued to honor her FMLA rights had she not done so.  Accordingly, the Court held that Plaintiffs failed to present evidence to support their prima facie claims and granted summary judgment in favor of the employer.  
    • Preliminary Objections Sustained in Employment Suit for Public Entity, October 5, 2023. Obtained dismissal of employment case for public entity.  Plaintiff alleged a whistleblower claim and multiple wrongful discharge claims after being terminated.  The Judge sustained the employer’s preliminary objections, as the Court agreed that plaintiff failed to set forth any legally viable claims against her supervisor or prior employer.
    • Dismissal of Employment Discrimination Charge Before the Pennsylvania Human Relations Commission, August 24, 2023. A terminated employee filed a Charge of Discrimination with the Pennsylvania Human Relations Commission against her non-profit employer alleging age, sex and disability discrimination.  We were able to prove through the investigation process that there was no discrimination.  The Charge was accordingly dismissed.
    • Dismissal of Employment Discrimination Charge Before Pittsburgh Commission on Human Relations, August 14, 2023. A terminated employee filed a charge of discrimination with the Pittsburgh Commission on Human Relations against his non-profit employer alleging age and disability discrimination.  We were able to prove through the investigation process that there was no age or disability discrimination.  The Charge was accordingly dismissed.
    • Secured Voluntary Dismissal of Employment Suit for Public Entity, May 24, 2023. A terminated employee filed suit in the United States District Court for The Western District alleging violation of his First Amendment Rights as a result of retaliation based on political opposition and protected speech.  The employee also alleged a violation of the Equal Protection clause of the Fourteenth Amendment.  After filing a Motion for Sanctions, the employee voluntarily dismissed the entire federal lawsuit. 
    • Secured Voluntary Dismissal of Homeowners Association in Unjust Enrichment Suit, January 13, 2023. A contractor sued a homeowner's association for unjust enrichment because the builder failed to pay it for its services.  After discussions with counsel, the contractor agreed to voluntarily withdraw said suit against the homeowner's association.
    • Motion to Dismiss Granted in Employment Suit for Public Entity, December 19, 2022. Secured dismissal of First Amendment count in the United States District Court for The Western District on behalf of public entity alleged to have retaliated against plaintiff for exercising her First Amendment rights to freedom of speech and to petition the government for redress of grievances. The public entity employer was entitled to dismissal of the First Amendment Count because plaintiff’s complaints were only intended to protect her interests, not that of the public.  The court declined to exercise supplemental jurisdiction over the remaining state law claims.
    • Summary Judgment Granted for Vocational School, May 10, 2021. Obtained summary judgment in state court on behalf of a vocational school alleged to have violated the plaintiff’s procedural due process rights to continued enrollment.  The plaintiff alleged sexual assault by an instructor and asserted that she was dismissed from the school after reporting the alleged assault.  The school was entitled to judgment as a matter of law as the plaintiff was unable to prove that she had a recognized property right in continued enrollment in a commercial driver’s license program.
    • Complaint Dismissed Against Homeowners' Association and Property Management Company, January 28, 2020. A homeowner, Plaintiff, filed suit in Butler County Court of Common Pleas.  Plaintiff sued the Homeowners' Association, the Property Management Company, the Property Managers and individual board members alleging breach of contract, breach of fiduciary duty, gross negligence, intentional misrepresentation and negligent misrepresentation. After arguing preliminary objections to the 490-paragraph complaint, the Judge sustained the objections and dismissed the entire lawsuit with prejudice.  The Judge also granted the Defendants' Motion for Sanctions against Plaintiff for failing to voluntarily dismiss the individual defendants from the suit.
    • Motion to Dismiss Granted for Housing Authority Alleged to Have Violated Civil Rights of Tenant and Guest, January 13, 2020. Plaintiffs filed a lawsuit in the United States District Court for the Southern District of West Virginia alleging that the housing authority and their employee violated state and federal laws.  After filing a motion to dismiss all claims against the housing authority and their employee, the Judge granted the motion in its entirety dismissing three counts alleging violations of federal laws and four counts alleging violations of state laws.
    • Defeated Class Action Certification Against Property Management Company, November 20, 2019. Eight homeowners filed a class-action complaint in Washington County Court of Common Pleas averring claims of conversion and conspiracy against a property manager of their homeowners' association. The homeowners sought to certify a class-action lawsuit for all of the unit owners in the planned community.  They accused the property manager of wrongfully converting unit owner association fees and conspiring to delay the "turn over" of their homeowners' association. After a lengthy and contentious discovery process, the Judge denied the class certification against the property management company. 
    • Dismissal of Employee's Claims of Employee Status, August 2018. Claimant filed a claim petition alleging he was an employee of a newspaper. The case was bifurcated to determine whether the claimant was an employee versus an independent contractor. The Judge dismissed the claim petition finding that claimant was an independent contractor. The Judge’s decision was upheld by the Workers’ Compensation Appeal Board and the Commonwealth Court. 
    • Voluntary Dismissal of Real Estate Agent from Lawsuit, November 16, 2017. A buyer sued multiple defendants, in Westmoreland County Court of Common Pleas, including the seller's real estate agent alleging claims of misrepresentation and unfair trade practices in Pennsylvania state court.  During the discovery process, counsel was able to prove that the real estate agent was not liable. Thus, Plaintiff voluntarily agreed to discontinue the lawsuit as to the real estate agent.   
    • On Trial Team: Secured Defense Verdict for Police Officer and Hung Jury Verdict for Second Officer in Sixteen Day Jury Trial, September 2017. Plaintiff brought claims of excessive force under Section 1983 of the Civil Rights Act and the Fourth Amendment in addition to assault and battery claims against both officers and sought compensatory and punitive damages. The claims arose from a traffic stop that plaintiff ultimately fled from while one of the officers was still partially inside his vehicle, which caused plaintiff to be shot multiple times resulting in his paralysis from the waist down.
    • Voluntary Dismissal of Borough and Chief of Police, March 17, 2017. A prior employee (plaintiff) filed a complaint in the United States District Court For The Western District of Pennsylvania alleging that the borough, the mayor and chief of police unlawfully discriminated against him, which forced him to resign. The employee set forth various federal and state claims including a violation of his substantive due process rights and intentional infliction of emotional distress. After deposing the plaintiff, he voluntarily agreed to dismiss the complaint with prejudice. 
    • Employee Injuries Denied and Determined Fully Recovered, May 2016. A union president filed multiple petitions against the employer for accepted and unaccepted injuries. During a six-year battle, the employer was successful in its defenses before the workers' compensation judge, the workers' compensation appeal board, the Commonwealth Court and the Pennsylvania Supreme Court. 
    • Employee's Claims for Wage Loss Denied, March 17, 2015. An employee, truck driver, filed a claim in West Virginia for injuries he suffered in the course of his employment. The Employer was successful in proving that claimant's disc injury was preexisting in nature, which was affirmed by the Supreme Court of Appeals.
    • Preliminary Injunction Denied, November 24, 2014. Plaintiff, a manufacturer and seller of refractory products, filed a Motion for Injunctive Relief to prohibit their prior employees from working with a new company, which also manufactured and sold refractory products. The Judge denied Plaintiff's Motion for Preliminary Injunctive Relief after a contentious, speedy discovery stage of depositions and other motions. The trial team was successful in protecting the defendants' new business from being shut down. 

Results

Putative Class Action Lawsuit Dismissed

In a case where we represented a child care center, a federal district judge from the Western District of Pennsylvania granted our motion to dismiss with prejudice. The plaintiffs were nine minority employees who were involuntarily furloughed in the fall of 2020. They filed suit, alleging their employment was terminated in violation of Title VII of the Civil Rights Act, the Age Discrimination in Employment Act, the Family Medical Leave Act, the Pennsylvania Human Relations Act, the Wage Payment and Collection Law, and Section 1981 of the Civil Rights Act. The court agreed with the arguments made by the center, finding that the plaintiffs’ class claims were not timely exhausted. The court disagreed with the plaintiffs’ arguments that their charges gave notice of their putative class claims because each charge only focused on the individual complainant’s alleged personal disparate treatment. The court also found that the plaintiffs were not entitled to equitable tolling as they did not exercise reasonable diligence in obtaining essential information bearing on their claim. Accordingly, the court dismissed the entire complaint with prejudice, finding no need to address the other bases for dismissal or the center’s request to strike the class action allegations. 

Lawsuit Against Insurance Broker Dismissed

In a case where we represented an insurance broker, a Federal District Judge from the Southern District of West Virginia granted our motion to dismiss and dismissed the suit in its entirety. The plaintiff was a women’s fashion and accessory boutique. The suit arose from a dispute over the plaintiff’s insurance coverage for damages it sustained while being ordered to close by West Virginia’s COVID-19-related orders. The insurance carrier filed a motion to dismiss, and, thereafter, the plaintiff voluntarily dismissed the carrier. The broker filed a motion to dismiss all of the claims plead against it, including bad faith, West Virginia’s Unfair Trade Practices Act, estoppel and breach of fiduciary duty. The court dismissed the counts of bad faith and Unfair Trade Practices Act, finding that the plaintiff failed to provide sufficient allegations to support such claims. The court further explained that the plaintiff alleged very few facts specific to the broker and that the allegations plead did not support any unreasonable conduct by the broker, which is required to establish bad faith or deception. For similar reasons, the court held that the plaintiff’s estoppel claim failed. The plaintiff alleged the broker advised that they would have coverage as a result of the COVID-19 orders. The court found that the plaintiff failed to allege how it relied on those representations or how that reliance was detrimental. The alleged representations occurred months after the plaintiff accepted the policy and did not appear to have any impact on the plaintiff’s request for payments from its insurance carrier. Finally, the court explained that the plaintiff failed to identify any West Virginia authority to establish a breach of fiduciary duty against the broker. Regardless, the court found that the plaintiff failed to allege that it requested specific coverage before the broker procured the policy.

Thought Leadership

Legal Updates for Real Estate E&O Liability

Pennsylvania Superior Court Confirms RESDL Claims Are Subject to a Two-Year Statute of Repose

August 17, 2026

The Pennsylvania Superior Court recently concluded that claims under the Real Estate Seller Disclosure Law (“RESDL”) are subject to a two-year statute of repose running from the settlement date. This decision will further assist defending errors and omission claims against real estate agents as it bars any RESDL action commenced more than two years after the settlement date regardless of when the defect was discovered.  In Hollinger v. Deitrich, 2026 Pa. Super. LEXIS 328 (June 23, 2026), the buyers entered into an agreement of sale in April of 2017 to purchase a residential property. The settlement occurred in June of 2017. The buyers reviewed the seller disclosures that revealed the property had a sump pump in working order and a sump pit. The disclosures further noted no water infiltration into the basement, but disclosed rehab, an addition to the property and prior sewage backup.  Shortly after the settlement and closing, the buyers experienced flooding in their basement. In March of 2020, the buyers filed suit against the seller, the buyers’ real estate agent and broker and the seller’s real estate agent and broker alleging various causes of action including a violation of RESDL. The buyers alleged that they sought assurances from the agent defendants that no water infiltration occurred on the property. They further alleged that both agents lived in the area and should have known about the neighborhood water infiltration issues. The trial court granted summary judgment for the seller and the seller’s agents and dismissed the RESDL violation.  Relying on the Supreme Court’s decision in Gidor v. Mangus d/b/a Mangus Inspections, 345 A.3d 629 (Pa. 2025), the court explained that a statute of limitation begins to run from the time of the injurious occurrence or a discovery of the same. However, a statute of repose runs for a statutorily determined period after a definitively established event. Notably, a statute of repose eliminates a cause of action regardless of when the claim accrues. Because of this, a plaintiff may not invoke the discovery rule or other equitable tolling considerations.  RESDL requires that an action for damages, as a result of a violation of this chapter, must be commenced within two years after the date of final settlement. The court found that Section 7311(b) was clear and unambiguous that an action for damages pursuant to this chapter must be commenced within a certain time after a definitely established event that is independent of any injury or discovery of any injury. Since the buyers sued over two years after closing on the property, their statutory claims were time-barred. The court explained that the seller disclosure statement could not support common law or consumer protection claims, as using it would improperly expand remedies beyond the statute’s terms. Accordingly, the court upheld the trial court’s summary judgment ruling that the buyers’ claims under RESDL were barred by the statute of repose.  Accordingly, defense counsel should scrutinize complaints involving RESDL claims to ensure that such claims have been timely brought within two-years of the settlement date. A plaintiff will no longer be able to invoke the discovery roll to expand the time frame.

Legal Updates for Real Estate E&O Liability

Protecting Real Estate Professionals with Renewed Strength and Expanded Reach

November 1, 2025

We are excited to announce the reinvigoration of our Real Estate Professional Liability defense team, servicing clients in eight states including Delaware, Florida, Maryland, New Jersey, New York, Ohio, Pennsylvania and West Virginia. Our Real Estate E&O Liability Practice Group represents real estate professionals and related service providers in high-stakes civil litigation across a wide range of claims. We have extensive experience defending real estate brokers, agents, and REALTORS® against malpractice and breach of duty allegations stemming from residential and commercial transactions, as well as those who play critical roles in facilitating these transactions, including title agents, abstractors, surveyors, mortgage brokers, appraisers, home inspectors and title insurance companies.  Our attorneys understand the complexities of real estate law and the nuances of professional standards in each of the jurisdictions in which we practice, allowing us to craft targeted defenses that protect our clients’ reputations and livelihoods. We are creative, proactive and strategic, working closely with our clients and their insurers to craft a formidable defense, often helping to resolve matters through negotiation or early motion practice pre-suit. When litigation is unavoidable, we bring deep courtroom experience and an unwavering commitment to defending our clients through trial and appeal, if necessary. We know that for professionals involved in real estate, litigation can be both financially and professionally disruptive. That’s why we prioritize efficient case management, cost-effective strategies and clear communication throughout the life of a case. Our goal is always to protect our clients’ interests while minimizing the impact on their business operations and professional standing. With a team that blends deep legal knowledge and real-world insight into the real estate industry, we are trusted counsel to professionals facing complex and often emotionally-charged disputes. Whether the matter involves a multimillion-dollar commercial deal or a single-family home transaction, our attorneys bring the same level of dedication and attention to detail. We are proud to be a reliable defense partner for real estate professionals and the businesses that support them. When your work is under scrutiny, you need a legal team that understands the stakes—and how to win.  Legal Update for Real Estate E&O – November 2025, 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 © 2025 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

United State District Court for the Middle District of Florida finds Evidence of Replacement Cost Value is Admissible and Recoverable Even When Repairs Have Not Been Made

The plaintiff filed a claim for damage as a result of Hurricane Ian. It claimed damages were over $24 million, but the carrier accepted partial coverage and paid $8,307.49 for secondary components. The carrier found hurricane damage to the building, but it was below the insurance policy’s $3.6 million deductible. The plaintiff sued for breach of the insurance policy. The carrier argued in a motion for summary judgment that plaintiff could not recover replacement cost value (RCV) because the property repairs had not been effectuated. The policy provided for RCV, but only after the repairs were completed. The carrier argued that because the repairs were not completed, the plaintiff was not entitled to RCV damages. The plaintiff argued the carrier could not withhold the actual cost value (ACV) due, which was the main allegation of the lawsuit, then fault it for not making the repairs to unlock the RCV. The United States District Court for the Middle District of Florida rejected the carrier’s argument, finding that when an insurer allegedly breached the policy by withholding coverage, it could not hide behind a repair-contingent provision to block the insured from RCV damages at trial. The court found the issue to be whether the contractual language designed to preclude certain coverage until after repairs are completed barred an insured from seeking those damages at trial when repairs were not complete. The court noted the Eleventh Circuit had not resolved this issue and neither side pointed to a definitive answer from the Florida Supreme Court. The court reasoned that it must look to the Sixth District Court of Appeal (6th DCA), which is the court which would have heard this case if it was in state court. The court noted the 6th DCA recently addressed this issue in Universal Prop. & Cas. Ins. Co. v. Rodriguez, 427 So. 3d 676 (Fla. 6th DCA 2026). The Rodriguez Court found that a breach of contract action is designed to adjudicate not only whether the contract was breached, but also evaluate the damages incurred had the breach not occurred, which the Rodriguez court found to be recovery of the RCV. This court also noted basic Florida contract principles compelled the same result, as a material breach frees the nonbreaching party to suspend its own performance and can demand the full benefit of its bargain, including RCV damages. Finally, the court found the distinction between a full denial and partial denial did not compel a different result. It found the policy required the carrier to acknowledge coverage and pay ACV for all covered damages, and the failure to do that is a material breach, entitling the insured to all of the damages available under the contract, which included the RCV.

Thought Leadership

Appeals Court Reverses Trial Court Order Awarding Attorney’s Fees Due to Lack of Evidence to Support Fee Awarded

The Fourth District Court of Appeal reversed the trial court’s order awarding appellate fees to People’s Trust Insurance Company based upon a lack of evidence to support the attorney’s fee award in RM & Assocs. Consulting, Inc. v. People's Trust Ins. Co., 2026 Fla. App. LEXIS 4654 (Fla. 4th DCA 2026). People’s Trust was the insurer of a residential property that had sustained water damage. RM & Associates Consulting was hired by the homeowner to perform mitigation services at the property. The homeowner assigned post-loss benefits to RM and RM subsequently filed suit against People’s Trust alleging that it had not been paid the money it was owed for the mitigation services. People’s Trust defended the lawsuit on the ground that the policy required the insured to notify the insurer before authorizing repairs so People's Trust could elect to use its preferred contractor. Because the owner did not comply with that provision, People's Trust asserted its liability was limited to the amount that its preferred contractor would have charged for the work, which People's Trust contended was $2,000. People's Trust paid that amount to RM before RM filed suit. People’s Trust filed a motion for summary judgment which was granted. RM appealed the summary judgment ruling and the ruling was upheld by the Fourth District Court of Appeal. The appellate court also granted People’s Trust’s entitlement to appellate attorney’s fees, subject to the trial court’s determination of the amount of fees, based upon an offer of judgment made by People's Trust. On remand, the trial court held an evidentiary hearing to determine the amount of attorney’s fees People’s Trust was entitled to. At the hearing, People’s Trust presented testimony from it’s fee expert, supervising trial counsel and appellate counsel. People’s Trust sought recovery of $24,866.17 for work performed by appellate counsel. The request primarily consisted of work performed in preparation of the answer brief. The fee expert testified that more than ninety hours spent preparing the answer brief was reasonable given the complexity and significance of the underlying issue. The appellate court found that the fee expert’s testimony fell short of meeting the necessary standard of demonstrating that the hours expended were necessary. The appellate court found that the billing records did not serve to cure the deficient testimony, as the billing records did not contain adequate details regarding the specific tasks performed. Rather the records contained entries such as “answer brief” which the appellate court found to be insufficient. The appellate court noted that neither the fee expert or counsel addressed how the prior research and briefing in the parallel litigation informed the work in the instant matter. The appellate court noted this was significant in that a court's attorney's fees award must exclude excessive, redundant, or otherwise unnecessary hours, citing Florida Patient's Compensation Fund v. Rowe, 472 So. 2d 1145 (Fla. 1985). Based upon the record failing to support the finding of the trial court, the 4th DCA remanded the case to the trial court for a reconsideration and redetermination of reasonable appellate attorney’s fees supported by competent substantial evidence. The 4th DCA reiterated that the fee expert’s focus on the quality of the work and the importance of the work to People’s Trust did not make up for the perceived deficiencies in the position that spending over ninety hours on a single answer brief was reasonable. Whether moving for attorney’s fees or challenging the amount of fees being sought by an opposing party, practitioners should be mindful of the evidence being used to support the claims being made. Parties should pay close attention to whether the hours being sought may be impacted by prior litigation either party may have engaged in. A party must be prepared to address how prior litigation efforts did or did not impact the amount of hours being claimed in current litigation. Lastly, billing records must be sufficiently detailed so as to support any potential future fee claim.

News

106 Marshall Dennehey Attorneys Recognized in the 2027 Editions of The Best Lawyers in America® and the Best Lawyers: Ones to Watch® in America

Marshall Dennehey is proud to highlight the firm’s 106 attorneys who have been recognized in the 2027 editions of The Best Lawyers in America® and the Best Lawyers: Ones to Watch® in America. Less than 6% of all practicing lawyers in the U.S. were selected by their peers for this recognition. Additionally, four of the firm’s attorneys received the Best Lawyers® 2027 “Lawyer of the Year” awards in their respective practice areas and demographic regions. Since it was first published in 1983, Best Lawyers® has become universally regarded as the definitive guide to legal excellence. Best Lawyers lists are compiled based on an exhaustive peer-review evaluation. For more information, please visit https://www.bestlawyers.com/. OUR 2027 LAWYERS OF THE YEAR Harrisburg, PA Christopher Reeser, Personal Injury Litigation - Defendants Kacey Wiedt, Workers Compensation Law - Employers Roseland, NJ Justin F. Johnson, Medical Malpractice Law - Defendants Leonard Leicht, Personal Injury Litigation - Defendants   OUR 2026 BEST LAWYERS IN AMERICA Philadelphia, PA Nicholas D. Bowers, Personal Injury Litigation - Defendants Josh J. T. Byrne, Professional Malpractice Law - Defendants Jefferey J. Chomko, Insurance Law James H. Cole, Insurance Law John J. Delany III, Personal Injury Litigation - Defendants Laurianne Falcone, Personal Injury Litigation - Defendants John P. Gonzales, Employment Law - Management John Hare, Appellate Practice Daniel D. Krebbs, Personal Injury Litigation - Defendants Michele Punturi, Workers' Compensation Law - Employers Bradley D. Remick, Product Liability Litigation - Defendants Andrea Cicero Rock, Workers' Compensation Law - Employers Robin M. Romano, Workers' Compensation Law - Employers Daniel J. Ryan, Jr., Personal Injury Litigation - Defendants Gary M. Samms, Professional Malpractice Law - Defendants Christopher N. Santoro, Personal Injury Litigation – Defendants; Product Liability Litigation -Defendants Josh D. Scheets, Personal Injury Litigation - Defendants Robert P. Schenk, Workers' Compensation Law - Employers Robert E. Smith, Insurance Law Robin Snyder, Litigation - Health Care Michael L. Turner, Commercial Litigation; Criminal Defense: White-Collar; Mass Tort Litigation / Class Actions - Defendants Claire Breaux Ventola, Product Liability Litigation - Defendants Pittsburgh, PA Melissa Devich Cochran, Commercial Litigation; Mass Tort Litigation / Class Actions – Defendants; Product Liability Litigation - Defendants  John F. Deasy, Personal Injury Litigation – Defendants; Product Liability Litigation - Defendants Daniel W. Deitrick, Workers' Compensation Law - Employers Douglas C. LaSota, Litigation - Construction; Mass Tort Litigation / Class Actions - Defendants Joseph V. Lesinski, Product Liability Litigation – Defendants   Christian D. 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First DCA Reverses Excessive Jury Award Unsupported by the Evidence

In December 2019, the plaintiffs filed a claim with Universal for damages caused by a water and sewage back up through the plumbing system and existing through multiple fixtures including the washing machine drain, kitchen sink, dishwasher, bathtub and toilet. Universal investigated the claim, issued payment for resulting water damage totaling $7,000.00 in actual cash value ($12,000.00 in replacement cost value). The plaintiffs sought additional benefits for work needed to access the below-slab cast iron plumbing system due to the failure of the system from rust, deterioration, corrosion and breaks in the line. Universal denied any additional benefits for access. In 2021, the plaintiffs filed suit. During litigation, Universal sent a plumber to inspect the home and the plumber concluded the pipes were clogged but could be cleaned. The plaintiffs’ plumber testified that the plumbing system needed to be replaced due to holes and openings in the pipes. The plaintiffs introduced two estimates prepared by Triad Restoration services totaling $79,680.22 in replacement cost value and $50,219.97 in actual cash value and an executed contract with another company for repairs with the amounts of repair redacted. Since the insurance policy did not provide coverage for repair or replacement of the plumbing system, the jury only had to decide whether the plumbing system needed to be replaced, and if it did, Universal would owe for the access costs; the jury verdict form required the jury to determine both the replacement cost value and actual cash value amounts. The jury asked if it had to rely on the Triad estimates for their amounts. The trial court advised the amount awarded had to be based on the evidence presented at trial and the law given by the trial court. The jury awarded $335,000.00 in replacement cost value or $305,000.00 in actual cash value. Universal motioned for a new trial arguing the amount awarded was unsupported by the evidence and then moved for remittitur. The trial court denied both motions and this appeal followed. The court found that while a jury’s verdict should only be disturbed with caution and discretion, the trial court must give the properly challenged award close scrutiny and determine whether it bears a reasonable relation to the damaged provided, is supported by the evidence, and could have been reached in a logical manner by reasonable means §768.74(3), (5)(d)-(e), Fla. Stat. The court found the trial court did consider the statutory requirements at the hearing on Universal’s remittitur motion and was concerned about a reasonable relation to the amount of damages proved and injury suffered and whether the award was supported by the evidence, but ultimately denied the motion, reasoning that the jury had been properly instructed to fairly and adequately compensate the plaintiffs. The court noted the only evidence providing the basis for the jury verdict was Triad’s estimates and those valued the plaintiffs' claimed loss at $79,680.22 in replacement cost value and $50,219.97 in actual cash value; no valuation evidence reasonably supported the jury verdict. The plaintiffs argued that the jury was entitled to consider more than the estimates, but the court conveyed the evidence provided did not give the jury a way to reach the amounts they awarded. The court was also not swayed by the plaintiffs’ argument regarding inflation and later price increases, but the court noted that no evidence via the contract, nor testimony regarding increase in labor, material, fuel or construction costs were entered into the record.  The court concluded the jury may draw reasonable inferences from the evidence, but it may not supply a damages number by speculation. The court did not find any of the plaintiffs’ remaining argument persuasive either. The court reversed the denial of Universal’s remittitur motion and motion for new trial as to damaged and remanded the case. The court ended its opinion with advising the trial court must determine whether replacement cost value or actual cash value is the property measure of damages under the policy and order remittitur in an amount consistent with that determination and the evidence.