Greenspoon Marder Partner John “Jack” Pelzer Secures Client Victory in $8 Million Hurricane Irma Damage Dispute Ruling
February, 2024 - United States of America
Fort Lauderdale, Fla. – February 13, 2024 – The Florida Supreme Court recently affirmed the ruling to send an $8 million hurricane damage dispute between American Coastal Insurance Co. and client San Marco Villas Condominium Association to appraisal, marking a significant victory for the firm’s client represented by Greenspoon Marder partner John “Jack” H. Pelzer.
The case originated as a dispute over the amount of damages incurred by San Marco Villas Condominium – a prominent condo complex located in Marco Island – during the events of Hurricane Irma in 2017. Despite a partial payment made by American Coast of $193,000 based on repair costs initially estimated to be $356,000, a public adjuster hired by the client submitted a supplemental claim asserting damages exceeding $8 million. After American Coastal denied the additional coverage in 2020, citing alleged material fraud by the association, the matter escalated to a legal dispute.
The policy contained an appraisal clause that allowed either party, in the event of a disagreement over the amount, to request a panel of three impartial appraisers to inspect, confer, and reach a binding agreement on the amount of the damages. The Condominium Association invoked the appraisal clause because the parties’ disagreement was over the amount of damages. The insurance company refused, claiming that its unilateral declaration of fraud created a coverage dispute that only a court can decide. According to prior precedent in some District Courts of Appeal, the coverage dispute had to be resolved first, and in the process, the court would also determine the amount of damage. This inflexible “coverage-first” rule would deprive the Condominium Association of the valuable contractual right to appraisal.
However, the Florida Supreme Court’s ruling emphasized that contractual terms grant San Marco Villas Condominium Association the right to appraisal in cases of amount-of-loss disputes. In its opinion, the Florida Supreme Court rejected arguments made by American Coastal Insurance Co. to adopt an inflexible coverage-first rule statewide, highlighting that contractual provisions govern the order of resolution in insurance disputes. Mr. Pelzer convinced the Florida Supreme Court to adopt the minority position and accord the trial judge’s discretion as to when to decide coverage disputes and when to send the damages question to the appraisers. This crucial decision brings consistency to this area of the law and removes a tactical cudgel that insurers have used previously against homeowners.
Mr. Pelzer is a Board-Certified specialist in Appellate Law by The Florida Bar with over 40 years devoted to mastering the essential skills for appellate practice. His expertise spans virtually all substantive areas of the law, with a track record of success in Florida and federal appellate courts. Mr. Pelzer has held key roles within The Florida Bar, including serving on the Appellate Court Rules Committee, the Appellate Practice Certification Committee, and the Board of Legal Specialization and Education, with stints as chair of the last two. With a background encompassing trial experience and extensive appellate work, Mr. Pelzer brings unparalleled insight and proficiency to every case he handles.
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