Antitrust Filed Alongside Bad Faith Claims Unlikely to Advance, According to Federal Judge

A case that could have huge repercussions on insurance litigation and insurance bad faith claims is in particular against State Farm insurance could go in the direction for the insurance company, according to reports. Plaintiffs brought antitrust claims against the insurance company, State Farm, alleging that it conspired with software makers to undervalue damage to homes in the due to fires; allegedly leaving homeowners with less than they needed to recoup the costs.
Complaints Against Valuation Tools
Specifically, the plaintiffs claim that State Farm relied on a valuation tool known as “360 Value,” which is produced by Verisk Analytics and Insurance Services Offices Inc. According to the complaint, the tool estimates property values at only 30 to 40 percent of their actual value and, as a result, does not account for a number of important aspects and factors that are relevant in calculating insurance payouts. In addition, another tool, called “Xactimate,” they allege, estimates construction costs at 50 percent below their actual market rates. For example, the tool estimated the cost of rebuilding one home at $804,000 when it actually cost $2.2 million, according to the complaint.
Antitrust Claims
The antitrust claim is based on allegations that the companies that produce these tools essentially monopolize the market, while providing flawed products, and State Farm has been complicit by decreasing ensures valuations for homes. However, the judge indicated that he did he was unsure that antitrust claims were appropriate for allegations linked to an insurance company allegedly relying on unreliable valuation tools that cost homeowners to suffer. Instead, he indicated that the product liability or negligence claim might be more appropriate.
In addition to the antitrust claims, the plaintiffs are alleging bad faith, breach of the implied covenant of good faith and fair dealing, false promise, negligence, intentional and negligent misrepresentation, reformation, and violations of state consumer laws that cover unfair competition and insurance practices. However, it is the antitrust claims that allow plaintiffs to pursue what are known as treble damages, which can triple any damages awards and, according to the plaintiffs, are necessary to actually recoup the costs of rebuilding. In addition, if plaintiffs prevail in the reformation claims, State Farm and other insurance companies could be forced to rewrite their insurance contracts and cover a small significant portion of homeowners rebuilding costs.
Contact Our Florida Insurance Litigation & Bad Faith Defense Attorneys
The law dictates that homeowners must ensure that their policy limits are adequate – that they review their policy limits carefully and consider insuring one’s property for more than in order to address increasing costs of labor and construction. Our Tampa insurance litigation attorneys represent insurance companies of all types in defending against bad faith and other claims. Contact us today at HD Law Partners to find out more about our services.
Resource:
courthousenews.com/antitrust-claims-against-state-farm-unlikely-to-advance/

Money related issues are one of the number one reasons couples end up seeking a divorce. For many, it is the number one cause of arguments between two married individuals. This is no surprise as, regardless of whether a couple is wealthy or in debt, many have financial disagreements.
Below, we discuss some of the biggest money-related reasons people end up getting divorced:
Opposing Views Of Money
One of the reasons financial issues become a problem is because couples fail to discuss these issues before getting married; only to find out afterwards that they have completely opposite views of money. Sometimes this leads to a “spender” and a “saver,” for example, who are continually at odds with one another. This can especially become an issue if a couple starts out in debt, which many do. This sometimes also adds to the anxiety which, in turn, can make discussing finances even more daunting.
Credit Card Debt
Credit card debt is another issue that sometimes comes between people, especially when one individual has worked overtime to pay off their own debt; only to have their spouse rack up new debt that they will both be responsible for. In fact, the larger a couple’s debt, the more likely money becomes an issue that they fight about.
Costly Financial Decisions – Alone & Together
Financial infidelity can have a devastating effect on marriage, and include secret purchases, costly addictions, and secret bank accounts. And when two people make costly spending decisions together, this can also add to the tension. One example is purchasing a house that is simply too expensive to sustainably stay in, as well as major purchases, such as a new car, or even major unexpected expenses, such as having to care for an elderly relative, a medical emergency, or even the wedding.
Bank Accounts & Feeling Marginalized
For some couples, combining bank accounts causes so much stress that advisers even go so far as to recommend keeping separate bank accounts so as to avoid that conflict. In addition, loss of financial control can end up causing some individuals to feel marginalized in the marriage, as though they do not contribute enough to the family wealth. This is sometimes the case for women in high net worth situations, for example.
Contact Our Florida Divorce Attorneys Today
Family court issues are some of the most stressful legal issues in the courts. Given that your personal and family’s financial well-being is at stake, you want to make sure that you work with the very best family law attorney in order to ensure that you are protected. Contact our experienced Tampa family attorneys at HD Law Partners today to find out more about our legal services.
Resources:
https://www.businessinsider.com/divorce-money-issues-financial-relationship-couple-2019-7
On July 15, a Florida Federal District Court made an important insurance bad faith litigation decision that involved a hurricane insurance claim. The court ultimately found that the insurance company must provide coverage to a limited number of locations when it comes to an outdoor grounds policy endorsement for a country club. The dispute involves damage caused by Hurricane Irma.
The Case & Decision
Grey Oaks Country Club filed a claim with its insurance company – Zurich Insurance Group Ltd – seeking compensation to cover damages from Hurricane Irma at 19 of its property locations. Zurich responded that it was only liable to cover one property/location (or “premises”). In response, the plaintiff country club argued that insurance company breached its coverage obligations under the commercial insurance policy and acted in bad faith by providing only partial payment and instead used the money to negotiate a lower settlement.
In all contract cases, interpreting an insurance contract is a question of law, and therefore must be decided by the court (and not a jury). Florida law dictates that if the “terms” of the contract are “clear” and “unambiguous,” the court must interpret that contract in accordance with its plain meaning. Only when there is ambiguity is it appropriate for the court to resort to outside evidence, where ambiguity is measured by whether the language is susceptible to more than one reasonable interpretation (not just because a contract fails to define a term).
Ultimately the court sided with Zurich because the policy did not define “premises,” therefore the court had to look to the unambiguous, general meaning via the actual addresses provided in the Declarations for Commercial Property Coverage, which included two addresses total. The Court pointed out that the club asking the court to designate each of the 19 locations as separate premises for the purposes of the Outdoor Grounds Coverage was not in keeping with the premises referred to in the Declarations for Commercial Property. The mailing address listed on the policy is what the court based its decision on and not the Schedule of Forms and Endorsements – which included the Schedule of 19 Locations – that was included.
Contact Our Florida Insurance Litigation Attorneys
Cases like this illustrate just how important it is to work with an attorney when it comes to not only interpreting your insurance contract, but in ensuring that, from the outset, any terms you agree to are favorable to you and what you expect. Our Tampa insurance litigation attorneys have significant experience in breach of contract claims, commercial litigation, insurance claims, insurance bad faith/litigation, and hurricane insurance claim denials, with offices in Tampa, Sarasota, Bradenton, Orlando, and Fort Myers, we are prepared to meet your legal needs. Contact us today at HD Law Partners to find out more.
Resource:
ecf.flmd.uscourts.gov/cgi-bin/show_public_doc?2018-00639-55-2-cv
Florida’s New Assignment of Benefits Law

A new assignment of benefits (AOB) law that came into effect here in Florida in July alters the practice of policyholders assigning third-party claim benefits of an insurance policy and could very well change the insurance litigation landscape in Florida.
The Bill’s Provisions
Prior to now, the combination of this practice with Florida’s one-way attorney fee statute allowed policyholders to recover attorney’s fees from an insurer. However, the new law that went into effect establishes a number of requirements when it comes to assignment agreement, including:
- Prohibiting certain fees and provisions;
- Requiring insurers to report data on claims being paid by early 2022;
- Transfers multiple pre-suit duties to assignees; and
- Starting in 2023, enables insurers to prohibit assignment, revises the state of Florida’s one-way attorney fee statute, and requires service providers to provide insurers with at least 10 days’ notice before filing a legal complaint.
Purpose & Effect
According to the legislators behind it, the law was passed in response to a decade of “abusive litigation tactics in Florida’s market.” However, the bill has been labeled a “consumer protection measure,” passed in response to a policyholder benefit that has caused higher rates for Florida property owners.
According to some sources, AOB lawsuits have exploded in recent years – especially in South Florida – leading to some insurers to increase rates for most-all of its homeowner’s policyholders to offset litigation expenses. That being said, insurers have also cited the fact that three hurricane seasons in a row have created certain unavoidable obstacles when it comes to elevated insurance rates. In addition, it is important to note that the insurance industry is celebrating this as a legislative victory, and while they expect a reduction in AOB litigation, they do not expect an overall reduction in insurance litigation.
Other Measures Now in Effect
In addition to AOB reform, other legislation – referred to as Florida’s omnibus insurance bill – will also have effects on the state insurance industry by imposing a right to contribution for defense costs for insureds who owe a duty to defend an insured. This is expected to have an important effect on construction defect claims and litigation, where an insured is covered under multiple insurance policies. While, historically, the first insurer would end up covering defense costs, now, these expenses are apportioned in accordance with the terms of the policies. The bill also makes some important changes to Florida’s bad faith statute, precluding parties from filing Civil Remedy Notices for 60 days after an appraisal is invoked in residential insurance disputes, essentially allowing insurers to pay appraisal awards without potential liability for extra contractual damages.
Contact Our Florida Insurance Litigation Attorneys with Any Questions
If you have any questions about the effect of the new law, or any insurance legal issue, contact our Sarasota insurance litigation attorneys at HD Law Partners today to find out how we can help.
Resource:
flarecord.com/stories/512713451-insurance-office-foresees-difficult-road-ahead-of-new-assignment-of-florida-benefits-law

An important insurance litigation decided by the 11th Circuit (Florida) during the second week of March laid the foundation for when insurance companies can determine whether they can indemnify their policyholders.
At Issue in the Case
The case involved an appeal of a district court decision finding that Mid-Continent Casualty Company (MCC)’s complaint for declaratory relief regarding whether it had a duty to indemnify one of its insureds in a pending lawsuit was not yet ripe for adjudication until the underlying lawsuit was resolved because the company’s duty to indemnify depends upon the resolution of that underlying lawsuit.
Rule, Analysis, & Conclusion
MCC had issued a number of insurance policies to a Florida construction company (Delacruz) that built single-family homes. As part of those policies, MCC was obligated to defend and indemnify Delacruz under certain conditions if they are sued for defective construction. Once the project was completed, a number of homeowners sued the general contractor that hired Delacruz for defective construction. The general contractor then turned around the sued Delacruz and its subcontractors for breach of contract, common law indemnity, contractual indemnity, Florida building code violations, and negligence. MCC sought a declaration in court that it is not obligated to indemnify Delacruz, claiming that the alleged defective construction claims fell outside of the policy limits they set on Delacruz, and the District Court ruled that the duty to indemnify was not yet ripe for adjudication because the underlying lawsuit (i.e. the general contractor’s lawsuit against Delacruz) was not yet resolved. In other words, before MCC’s motions can be resolved, Delacruz’ liability has to be established.
While the 11th Circuit had not, before now, directly addressed the question of whether it is appropriate for a district court to assess an insurer’s duty to indemnify before an underlying lawsuit is resolved, they had already considered the issue in an unpublished opinion, finding that the duty to indemnify is always dependent upon the entry of a final judgment, resolution, or settlement addressing the underlying claims. In addition, a number of Florida district courts had already ruled that an insurer’s duty to indemnify is not ripe until an underlying lawsuit is resolved or the insured’s liability is established. As a result, the 11th Circuit agreed with existing case law and the district court’s opinion in this case that MCC’s duty to indemnify Delacruz could not be decided (i.e. was not “ripe for adjudication”) until the underlying lawsuit (the general contractor’s claim against Delacruz) is resolved.
Contact Our Florida Insurance Litigation Attorneys to Find Out More
When it comes to insurance-related litigation in Florida, HD Law Partners has that experience necessary to properly represent an insurance carrier such that they do not waste their time and money presenting motions in court that are not yet ripe for review. Contact our insurance attorneys today to find out more about our services.

Given the devastation caused by hurricane Michael to Florida last October, there is still plenty to be done, especially as a number of property owners are still waiting for their insurance companies to ‘make them whole’ in terms of their losses. In an effort to provide some relief to affected Florida property owners, on April 16, Florida state lawmakers moved legislation that aims to provide assistance to Floridians that are still recovering from the hurricane. Specifically, Senate Appropriations approved two bills to provide assistance in debris removal, housing, infrastructure, and other necessary repairs.
Funds Set Aside for Hurricane Recovery
One provision would also create a $300 million program of “rainy day” funds for local governments and school boards, allowing them to prioritize funds for housing needs, task forces to oversee recovery efforts, and improving building codes.
If the bills are implemented, total Florida state commitment on Hurricane Michael recovery would come to almost $2 billion. In addition, another bill that was approved on April 16 would take some funds set aside for the 2010 Deepwater Horizon oil spill and allow them to, instead, be used for hurricane recovery needs. The measure would direct the state Department of Economic Opportunity to designate a number of recovery infrastructure project priorities, especially in counties such as Calhoun, Jackson, Liberty, Jefferson, Holmes, Jackson, Gadsden, and Washington.
What About the Florida Power & Light Controversy?
In May, state regulators will decide on the controversial issue involving Florida Power & Light’s costs to restore power after hurricanes; specifically, a number of business groups, as well as the state Office of Public Counsel, have argued that Florida Power & Light did not rely on the proper processes for paying storm costs and failed to follow its mandate of passing savings onto tax paying customers. Under a 2016 base-rate settlement approved by the Public Service Commission, the company was allowed to pass along hurricane restoration costs to customers in the event of a hurricane; however, by the company relying on a reserve to cover hurricane restoration costs, and then using tax savings to replenish the reserve, business groups and the Office of Public Counsel contend that the company failed to actually pass on tax savings to customers, as it was supposed to.
Contact Our Florida Hurricane Insurance Claim Attorneys If You Are In Need Of Recovery Relief
Northwest Florida in particular is still suffering after the category four hurricane, and Congress has been unable to agree on in a package for a number of disasters, including hurricane Michael.
If your home suffered damage, working with a Florida hurricane insurance attorney to file your insurance claim, or appeal any denied or delayed coverage, can make all the difference in ensuring that you get what you need to get back on the road to recovery. Contact our successful Fort Myers hurricane insurance claim denial attorneys at HD Law Partners today to find out how we can help.
Resources:
miami.cbslocal.com/2019/04/16/florida-lawmakers-hurricane-michael-relief/
www.miamiherald.com/news/politics-government/state-politics/article229361014.html

The divorce process became significantly more complicated this year with the code changes. Not only did a number of Americans end up owing more than expected, but along with these changes also came a slew of unforeseen consequences. For example, the spouse paying alimony can no longer deduct the payment, and the spouse receiving alimony no longer has to pay taxes on it as income, making alimony payments in general costlier, and divorce negotiations more strained. This loss is not insignificant: for some, it amounts to thousands of dollars; and its loss becomes more and more significant as the income difference increases.
In an effort to offset some of the losses associated with the loss of the alimony deduction, as one example, a number of divorce attorneys and accountants are resorting to other money saving (creative) techniques, as we discuss below.
Grantor Trusts
One way to try and get around this loss is to set up a trust for the spouse who would otherwise receive alimony. Known as “grantor trusts,” they are effectively designed to pay out income without the tax burden, and are funded with assets designed to generate income. It is essentially a property settlement that must be established after the divorce decree has been finalized. Trusts set up like these ensure that payments continue even if the paying spouse passes away and when the receiving spouse passes away, the rest goes to heirs. However, some accountants have warned that the IRS could see this is simply disguised alimony.
Property Taxes & The Family Home
Another serious aspect of voice is changed is the decision to hold onto the family home. Before the tax code change, sometimes the spouse with less income would choose to hold onto the home for the sake of the children. However, this has now become significantly more expensive to do because property taxes are no longer fully deductible, and this has led some to sell the home.
Dependent Exemptions
Dependents and associated deductions have also changed significantly. The $4,050 exemption per dependent has completely disappeared, although the child tax credit was increased from $1,000 to $2,000. Still, this credit starts to phase out as soon as parents reach a certain income. This has changed circumstances for a number of parents, and some have found that allowing the spouse who makes less income to spend more time with the children could end up being helpful, financially, down the road.
Consider Doing A Practice Run
Overall, the divorce process has become far more complicated in states where standards are significantly different than the new federal standards. A number of accounting advisors suggest that couples go through a practice, or “pro forma” tax filing in order to provide them with some foresight about how certain choices with respect to filing will affect them. For example, couples may find that filing taxes jointly is more expensive than filing separately.
Contact Our Florida Divorce Attorneys to Find Out More
If you live in Florida and are contemplating divorce, contact our experienced Tampa divorce attorneys at HD Law Partners today to find out how we can help.
Resource:
nytimes.com/2019/04/19/your-money/taxes-tips-divorce.html

During stressful times as going through divorce proceedings, it is common to let important issues and accounts, such as insurance coverage, fall by the wayside. However, during this time, it is extremely important to take a close look at any and all insurance policies in order to foresee whether your insurance policies may be impacted once your divorce is finalized – in order for you to strategically prepare.
Below, we discuss the two main types of insurance that are typically relevant during divorce: health and life insurance.
Health Insurance
When a couple is married, frequently, one spouse is covered in terms of their own health insurance on the other’s health plan. In order to help the spouse that does not earn an income after divorce, the purpose of the Consolidated Omnibus Budget Reconciliation Act (COBRA) is to allow them to continue the coverage under their ex’s plan for three years afterward.
However, while COBRA is convenient in terms of continuation of existing coverage, it is not necessarily the most affordable option. In addition, the time limit makes it somewhat impractical after a certain amount of time has passed.
Now that the Affordable Care Act has been passed, there may very well be cheaper health plans available for those who either don’t have their own health insurance through an employer and/or do not make enough income to purchase their own private plan. You can explore all of these options with a variety of advisers, including your divorce attorney.
Life Insurance
Life insurance is also important consideration during divorce, especially if spousal support is relevant to you. While spousal support stops when the payer passes away, typically, these payments can continue pursuant to a life insurance policy on the payer. In addition, sometimes your attorney can ensure that the life insurance policy is a required part of your divorce settlement. If this is of interest to you, you will want to make sure that you own the policy so as to retain control over that policy and ensure that changes are not made and payments regularly occur.
Life insurance needs to be arranged for before the divorce is finalized because the payer spouse ends up being uninsurable, in which case adjustments may need to be made to the divorce decree in some circumstances. In addition, existing policies may be considered a marital asset under some circumstances.
Contact Our Florida Divorce Attorneys To Find Out More
Like every other issue that you have to deal with before, during, and after divorce, figuring out how to address and deal with insurance policies may not be very straightforward. However also like everything else, you must be aware of all of the policies and details going into the divorce so that you are aware of what you might want to adjust for your divorce settlement.
If you live in Florida and have any questions about divorce, including insurance policies before and after, contact our experienced Tampa divorce attorneys at HD Law Partners today to find out how we can help.
Resource:
forbes.com/sites/catherineschnaubelt/2019/04/29/insurance-issues-to-consider-in-a-divorce/#e9dbaf0b5d1e
What Hurricane Michael Damage Looks Like Today

Seven months after Hurricane Michael hit Florida, the estimated losses from the Category 5 storm are currently over $50 billion. Property damage alone reportedly accounts for more than $5 billion, and many property owners’ claims have gone unpaid by insurance companies that are supposed to make them whole again in times like these. In addition, federal disaster relief funding has been stuck in gridlock and affected by other devastated areas, such as California and Iowa, as well as other hurricane effected neighbors of Florida.
The Significant Loss
Hurricane Michael hit Florida with significantly more force than even Hurricane Katrina hit Louisiana. The storm was especially felt in coastal cities such as Apalachicola, Panama City, and a number of others; shredding boats, businesses, and homes, and causing a number of people to go missing. People not only lost property, but a number of individuals died as well as a result of the disaster. To date, some residents are still without power. Even a number of Florida parks are still closed today. For example, the hurricane destroyed 80 to 90 percent of Florida Caverns State Park and its buildings. Thousands of trees are still uprooted throughout the state and its national forests, with agricultural and forestry losses representing more than $3 billion. There is no question that, in order to rebuild, people are going to need a lot of help.
Mexico Beach, Florida in particular has been hard-hit, with the beaches and businesses still just concrete slabs. Towns still have no banks, gas stations, or grocery stores, and very few homes are habitable. Even sewer services are still unavailable. In addition, devastating, catastrophic damage was inflicted in areas such as Bay County, where more than 45,000 buildings were damaged and destroyed, including hospitals.
Without insurance companies coming through on insurance claims, things cannot get better, and that includes the demolition of damaged buildings and the rebuilding of new ones, as well as cities. Structural damage alone done to homes has reached what some call the tipping point; translating into homelessness and unemployment.
There Is More To Be Done: Contact Our Florida Hurricane Insurance Claim Attorneys
While the Florida Legislature approved an additional $220 million in the budget—bringing the total funding to close to $2 billion—a more comprehensive federal package is still pending. In addition, while the Florida Department of Environmental Protection has been promised $4 million from the federal government, these funds will only cover debris removal.
If you have suffered from the hurricane and have concerns about your insurance claim, contact our experienced Fort Myers hurricane insurance claim denial attorneys at HD Law Partners today to find out how we can help you and your family get back on the road to recovery.
Resources:
https://wfsu.org/post/fema-reimburses-florida-hurricane-michael-debris-removal
https://cnn.com/2019/04/19/weather/hurricane-michael-upgraded-category-5/index.html
https://abc3340.com/news/nation-world/six-months-after-hurricane-michael-made-landfall-mexico-beach-waits-for-disaster-relief
https://tallahassee.com/story/news/2019/05/07/donald-trump-hurricane-michael-disaster-relief-trump-rally-panama-city-beach-puerto-rico/1130136001/
https://www.hdlawpartners.com/hurricane-michael-debris-causes-new-wildfire-devastation-to-florida-homes-properties/
As attorneys who regularly practice in business formation here in Florida, one recent question we have received is whether an S corporation should switch to a C corporation after the passage of the Tax Cuts and Jobs Act, and whether there is a corresponding ability for C corporations to exclude any gain from the sale of stock held for more than five years.
Below, we discuss this possibility under section 1202 and the potential to gain a huge tax break by switching to a C corporation. In a nutshell, there is some inconsistency within the statutory language which makes how you convert from an S to a C corporation very important in this process.
What Section 1202 Does & Qualified Small Business Stock
Section 1202 allows for shareholders who acquire qualified small business stock after September 2010 and hold onto it for five years to sell that stock and exclude it as declared income the greater of $10 million or 10 times the shareholder’s basis in the stock. However, there are a number of requirements that must be met in order for stock to qualify as qualified small business stock; requirements that sometimes confuse even the best tax advisers, attorneys, and shareholders alike.
In a nutshell, in order for stock to qualify as qualified small business stock it must;
- Be issued while the corporation is already a C corporation;
- Have been acquired at original issuance;
- Be linked to the corporation whose total assets are less than $50 million starting from the date of that company’s formation up to the shareholder acquiring the stock; and
- Be linked to a corporation that is not a specified service business (for example, one that is not involved in accounting, health law, consulting, financial services, engineering, or any business where the principal asset involves the skill or reputation of the owner or its employees).
You want to ensure that you meet these requirements, as–even if you convert to a C corporation– you will not be eligible if you do not. For example, if the existing outstanding stock of the company was not issued while it was a C corporation, it will never be eligible for benefits upon sale, therefore, the C corporation would have to issue new shares of stock to the shareholders–who would then have to hold that stock for five years and meet all of the other requirements–before that stock can be sold tax-free.
Other Means Of Achieving Same Benefit
Keep in mind, however, that attorneys who practice in business formation may be able to advise you on other ways to exclude post-conversion appreciation under section 1202. For example, section 1202(g) also allows for a pass-through entity to hold qualified small business stock; as long as all of the aforementioned requirements have also been met. In addition, the owners of the pass-through entity can exclude their share of that entity’s gain upon its disposition of qualified small business stock as long as two additional requirements are met:
- The owners of the entity must hold an interest in that entity as soon as it acquires that qualified small business stock through the date of disposition; and
- Each owner can only exclude the gain up to their share on the date that the entity acquired the stock.
Contact Our Florida Business Formation Attorneys to Find Out More
The lesson here is; if you’re thinking of switching to a C corporation, you want to ensure that you consult an experienced business formation attorney first in order to ensure that you do it right, as a mistake could quite literally costing millions. Contact our Tampa business and corporate attorneys at HD Law Partners today to find out more.
Resource:
forbes.com/sites/anthonynitti/2019/05/13/switching-from-s-to-c-corporation-how-you-do-it-could-save-or-cost-you-millions/#5b09abb27f74

