WSHB is proud to announce a significant appellate win achieved by partner Richard Singer, in a case involving complex issues surrounding forced place insurance policies. The decision by Florida's Third District Court of Appeal affirms the trial court's dismissal of a borrower's claim for lack of standing and delivers critical guidance on the rights of borrowers under lender-placed insurance policies.
The case arose after WSHB successfully argued at the trial level that the borrower did not have standing to bring claims under the lender's insurance policy. On appeal, the appellant cited federal case law suggesting that borrowers could be considered third-party beneficiaries due to their insurable interest in the property. However, following full briefing and oral argument, the appellate court sided with the insurer, holding that there was no clear or manifest intent that the insurance policy was intended to directly benefit the borrower.
In its opinion, the court also confirmed that the surplus lines statute governed the policy at issue, rendering any argument under Chapter 627 of the Florida Insurance Code inapplicable.
"This ruling reinforces that forced place policies are contracts between insurers and lenders, and that courts should not infer third-party beneficiary status where the policy's language does not expressly provide it," said Singer. "We're proud to have secured a decision that not only affirms the law but also clarifies it for future litigants and courts alike."
WSHB partner and London Market Head, Vincent Beilman, added, "This victory is a testament to our firm's appellate experience and the strength of our legal team. The Court's opinion is comprehensive and well-reasoned, and it sets an important precedent for how these issues should be evaluated moving forward."
The decision is expected to provide much-needed guidance for trial and appellate courts across Florida as they continue to address the evolving landscape of forced place insurance litigation.
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