Insurance — Property — Standing — Assignment — Assignment of post-loss property insurance benefits without insurer’s consent was valid despite presence of non-assignment clause

Online
Reference: FLWSUPP 2304KIDW

PLAINTIFF’S
MOTION FOR SUMMARY JUDGMENT

AS TO
DEFENDANT’S AFFIRMATIVE DEFENSES

This matter having come before the Court on July 27, 2015 upon Defendant’s
Motion for Partial Summary Judgment and Plaintiff’s Motion to Strike
Defendant’s Affirmative Defenses, or, in the Alternative, Motion for Summary
Judgment on Defendant’s Affirmative Defenses, and having heard the argument of
counsel and being duly advised in the premise, it is hereby ORDERED and
ADJUDGED:

1. On September 11, 2014, the Insured, Nancy Heroux, suffered a water loss
at her property. Defendant, Citizens Property Insurance Corporation, issued a
policy of insurance to the Insured that provided coverage for the property.

2. Plaintiff, Air Quality Assessors of Florida, performed moisture
evaluations and testing at the property related to the covered loss. In
consideration for the services rendered, the Insured executed a post-loss
assignment of benefits in favor of Air Quality Assessors of Florida.

3. Defendant failed to acknowledge the assignment of benefits at issue and
failed to reimburse Plaintiff for the services rendered.

4. On or about February 24, 2015, Plaintiff filed this action to recover
the payment for the unpaid benefits at issue.

5. On March 23, 2015, Defendant filed its Answer and Affirmative Defenses,
stating “Citizens’ insurance policy complies with Florida statutes and contains
an assignment condition that requires all assignment agreements to be approved
by Citizens in writing before the assignment can be valid.”

6. Additionally, Defendant asserted two Affirmative Defenses. The first
stating, “The assignment by the Insured to Plaintiff was not approved by
Citizens. Absent Citizen’s consent, the assignment is not valid or enforceable
against Citizens.” The second Affirmative Defense stated, “Because there has
been no valid assignment, Plaintiff lacks standing and cannot pursue this or
any claim for breach of the policy.”

7. The policy at issue states in relevant part:

“Assignment of
this policy will not be valid unless we give our written consent.”

8. On May 12, 2015, Defendant filed its Motion for Partial Summary
Judgment, requesting the Court to determine the assignment of benefits at issue
was unambiguous as a matter of law, and that the assignment assigned the entire
insurance contract to the Plaintiff.

9. On May 21, 2015, Plaintiff filed its Motion to Strike Defendant’s
Affirmative Defenses, or in the Alternative, Motion for Summary Judgment on
Defendant’s Affirmative Defenses. Plaintiff’s Motion stated that the assignment
of benefits created a valid assignment of post-loss insurance benefits and did
not constitute an assignment of the entire policy.

10. “Under Florida law, an insured may assign his right to benefits under
a contract of insurance.” Schuster v. Blue Cross & Blue Shield of Fla., 843
So. 2d 909, 911-912 (Fla. 4th DCA 2003) [28 Fla. L. Weekly D505a]. “Post-loss
insurance claims are freely assignable without the consent of the insurer.” Citizens
Prop. Ins. Corp. v. Ifergane, 114 So. 3d 190, 195 (Fla. 3rd DCA 2012) [37
Fla. L. Weekly D2205a]. This is true despite the presence of an anti-assignment
clause. See Cont’l Cas. Co. v. Ryan Inc. Eastern, 974 So. 2d 368, 377
n.7 (Fla. 2008) [33 Fla. L. Weekly S59a] (finding “ ‘it is a well-settled rule
that [anti-assignment provisions do] not apply to an assignment after loss.’
”).

11. The validity of post-loss assignment of benefits has been reaffirmed
by a majority of Florida’s District Courts of Appeal. See Accident Cleaners,
Inc. v. Universal Ins. Co., No. 5D14-352 Fla. App. LEXIS 5199 (Fla. 5th DCA
April 10, 2015) [40 Fla. L. Weekly D862a]; One Call Prop. Servs. v. Sec.
First Ins. Co., 165 So. 3d 749 (Fla. Dist. Ct. App. 2015) (4th DCA May 20,
2015) [40 Fla. L. Weekly D1196a]; United Water Restoration Group, Inc.,
a/a/o Oran Walker v. State Farm Florida Insurance Company, No. 1D14-3797,
2015 Fla. App. LEXIS 10403 (1st DCA July 8, 2015) [40 Fla. L. Weekly D1569a].

12. As stated in One Call Prop. Servs.,

“Even when an
insurance policy contains a provision barring assignment of the policy, an
insured may assign a post-loss claim. See W. Fla. Grocery Co. v. Teutonia
Fire Ins. Co., 74 Fla. 220, 224, 77 So. 209, 210-11 (1917) (“The policy was
assigned after loss, and it is a well-settled rule that the provision in a
policy relative to the consent of the insurer to the transfer of an interest
therein does not apply to an assignment after loss.”); Lexington Ins. Co. v.
Simkins Indus., Inc., 704 So. 2d 1384, 1386 n.3 (Fla. 1998) [23 Fla. L.
Weekly S41a] (“[The insurer] concedes that an insured may assign insurance
proceeds to a third party after a loss, even without the consent of the insurer.”);
Accident Cleaners, Inc. v. Universal Ins. Co., 2015 Fla. App. LEXIS
5199, 2015 WL 1609973, *2 (Fla. 5th DCA Apr. 10, 2015) (“[The insurer’s]
argument ignores that the right to recover is freely assignable after loss and
that an assignee has a common-law right to sue on a breach of contract claim.
Dating back to 1917, the Florida Supreme Court recognized that provisions in
insurance contracts requiring consent to assignment of the policy do not apply
to assignment after loss.”); Citizens Prop. Ins. Corp. v. Ifergane, 114
So. 3d 190, 195 (Fla. 3d DCA 2012) [37 Fla. L. Weekly D2205a] (“Post-loss
insurance claims are freely assignable without the consent of the insurer.”); Better
Constr., Inc. v. Nat’l Union Fire Ins. Co., 651 So. 2d 141, 142 (Fla. 3d DCA
1995) [20 Fla. L. Weekly D420a] (“[A] provision against assignment of an
insurance policy does not bar an insured’s assignment of an after-loss
claim.”); Gisela Invs., N.V. v. Liberty Mut. Ins. Co., 452 So. 2d 1056,
1057 (Fla. 3d DCA 1984) (“A provision in a policy of insurance which prohibits
assignment thereof except with consent of the insurer does not apply to prevent
assignment of the claim or interest in the insurance money then due, after
loss.”); see also NextGen Restor., Inc. v. Citizens Prop. Ins. Corp., 126
So. 3d 1255, 1256-57 (Fla. 2d DCA 2013) [38 Fla. L. Weekly D2386a] (stating in
dicta: “[The anti-assignment clause] does not appear to prevent an assignment
of benefits or proceeds owing by virtue of a claim arising under the policy. We
do not reach the validity of this specific assignment of insurance benefits,
but we note that other cases seem to permit assignees to bring similar
actions.”). One Call Prop. Servs. v. Sec. First Ins. Co., 165 So. 3d 749
(Fla. Dist. Ct. App. 2015) [40 Fla. L. Weekly D1196a]

13. In the case at hand, Defendant’s consent was not required for the
Insured to make an assignment of post-loss benefits.

14. Plaintiff’s assignment does not assign the entire insurance contract
to Plaintiff.

15. Plaintiff has standing to bring this action by virtue of a valid
assignment of post-loss benefits.

* * *