NU Online News Service, Oct. 07, 3:22 p.m. EDT
A three-judge panel in the First District Court of Appeals in Florida denied a request from the state's insurer of last resort to dismiss a lawsuit against it based on the belief the government entity is immune.
A lawsuit filed in the circuit court by the San Perdido Association alleges Citizens acted in bad faith and persistently refused to pay the property's claim after Hurricane Ivan in 2004.
The case has not gone to trial, but Citizens sought to have the case dismissed in the appellate court. Two of the three appellate judges said the case needs to go to trial before it can rule on Citizens' motion to dismiss it on the grounds that it is immune from litigation as a government entity, according to court documents.
The trial court has already denied a motion to dismiss, according to court records.
Under statute, Citizens was granted immunity in connection with the performance of its duties or responsibilities, but another state statute states that immunity does not apply to "a willful tort or for a breach of contract pertaining to insurance coverage."
A majority of the appellate panel found there to be no "irreparable harm" in waiting until the case goes to trial.
However, Judge T. Kent Wetherell dissented, and said it is "incumbent" upon the appellate court to rule on the matter because "the trial court's erroneous order denying Citizens' immunity from [San Perdido]'s suit will cause material injury to Citizens…."
According to Citizens, the appellate court certified this matter to the Florida Supreme Court for determination of jurisdictional issues.
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