After a serious car accident, the last thing you want is unexpected challenges. An experienced Florida wrongful death attorney can help guide you through the civil litigation process when a difficult period becomes overwhelming. In a recent case (No. 3D15-2750), the parents of a child faced the stressful situation of the defendant disappearing. Their child was killed in an auto accident, and they filed suit for wrongful death. When the defendant driver disappeared, the parents were unable to hold him accountable. Nevertheless, the parents continued their lawsuit.
The trial court entered two final summary judgments in favor of the parents. The auto insurer appealed, arguing the judgments were entered in error. The auto insurer notified the defendant driver of its reservation of rights to deny coverage, since the at-fault driver was not listed as a driver under the insurance policy. Soon afterward, the driver absconded and could not be found. The insurer notified the defendant of its reservation of rights a second time, since he failed to cooperate with the investigation. Over the course of this proceeding, several more letters notifying him of his reservation of rights were mailed. Despite this, the insurer continued to represent him for many years of the proceeding, including the post-judgment phase of litigation. The jury returned a verdict of over $15 million in favor of the parents, and the trial court entered a final judgment consistent with the verdict. The insurer then sought to decline coverage based on the defense of breach of cooperation.
The appellate court ruled that the insurer could not use this defense because it failed to follow the requirements of section 627.426 of the Florida Statutes (2015), the Claims Administration Statute. This statute prevents insurers from denying coverage unless they have sent a reservation of rights to assert a coverage defense to the named insured by registered or certified mail or hand delivery to the last known address of the insured within 30 days when they knew or should have known they needed to use the coverage defense. Within 60 days after this, or no later than 30 days before trial, the insurer must then give notice to the named insured of its refusal to defend the insured through registered or certified mail, obtain a non-waiver agreement, or retain an independent attorney who is mutually agreeable to the parties.