July 16, 2024
Health Insurance

Florida Supreme Courtroom Holds that the Presumption Favoring Insurers Created in Florida Statute 627.7073(1)(c) (2005) Does Not Apply in Litigation

The difficulty of whether or not the 2005 Florida Statute sections 627.7065, 627 .7072, and 627.7073 (2005), which affected sinkhole database info, testing requirements, and reporting necessities, created a presumption that shifted the burden of proof to the home-owner in litigation to disprove an insurer’s professional’s opinion that injury was not attributable to a sinkhole has been in query for a number of years. Final month, the Florida Supreme Courtroom definitively held the statutes don’t create a presumption in litigation.


In August 2005, Mr. Warfel seen broken partitions and flooring in his house. He filed a sinkhole declare underneath his all-risk coverage with Common, and Common retained specialists to conduct the investigation required by Florida Statute part 627.707. Common denied the declare after the specialists it retained concluded that injury was attributable to shrinkage, thermal stress, and differential settlement, all of which have been excluded from protection underneath the coverage. Mr. Warfel then filed swimsuit.

Common requested the trial courtroom to find out that Florida Statute part 90.304 allowed a jury instruction primarily based on part 627.7073(1)(c) as a rebuttable presumption affecting the burden of proof. Florida Statute part 90.304 offered:

In civil actions, all rebuttable presumptions which aren’t outlined in s. 90.303 are presumptions affecting the burden of proof.

Part 627.7073(1)(c) offered:

The respective findings, opinions, and suggestions of the skilled engineer or skilled geologist as to the reason for misery to the property and the findings, opinions, and suggestions of the skilled engineer as to land and constructing stabilization and basis restore shall be presumed appropriate.

Common argued that its professional report findings have been presumptively appropriate, and the presumption shifted the burden of proof to Mr. Warfel to show that the injury was attributable to a sinkhole. Mr. Warfel argued that the part 627.7073(1)(c) presumption was a “vanishing” presumption, which affected the burden of manufacturing proof however didn’t shift the burden of proof to him. The trial courtroom agreed with Common and instructed the jury:

You could presume that the opinions, findings, and conclusion within the SD II report as to the reason for injury and whether or not or not a sinkhole loss has occurred are appropriate. This presumption is rebuttable. The Plaintiff has the burden of proving by a preponderance of the proof that the findings, opinions, and conclusions of the report aren’t appropriate.

On enchantment, Florida’s Second District Courtroom of Enchantment sided with Warfel. The Courtroom defined that in enacting the statutes regarding the professional experiences, the Legislature didn’t clearly state that public coverage requires a home-owner to bear the burden to disprove the findings and suggestions of the insurer’s engineers and geologists. The Courtroom additionally famous that all-risk insurance policies historically give the insurer the burden to show {that a} claimed loss isn’t lined. The Courtroom then famous, it “should assume that the legislature was conscious of this reality when it enacted part 627.7073(1)(c),” and that the Legislature “is aware of how one can create burden-shifting presumptions underneath part 90.304.” Warfel v. Common, 2009 WL 4640882 at *2 (Fla. 2nd DCA 2009). Within the absence of clear Legislative intent in any other case, the Courtroom concluded the presumption underneath part 627.7073(1)(c) was a “vanishing” or “bursting bubble” presumption that affected solely Mr. Warfel’s burden of manufacturing proof. As Mr. Warfel produced credible proof contradicting the presumption, the presumption vanished and the problem ought to have been decided on the proof as if no presumption ever existed.

As a result of the trial courtroom misapplied the presumption and gave the jury an instruction that improperly shifted the burden of proof, the Courtroom awarded Mr. Warfel a brand new trial. However the District Courtroom additionally licensed the next query as considered one of nice public significance to the Florida Supreme Courtroom:


Discovering the applying of a selected provision inside Chapter 627, the Insurance coverage Code, to the evidentiary context is “each misguided and inappropriate,” the Courtroom answered no; part 627.7073(1)(c) has no utility in litigation. The Courtroom famous that “nothing within the sinkhole declare course of statutory scheme, because it appeared in 2005, applies that scheme within the litigation context,” and that Chapter 627 was designed to offer a framework for insurance coverage corporations to observe within the declare adjustment course of. After analyzing the entire 2005 modifications to the sinkhole claims course of, the Courtroom concluded, “[i]f something, the presumption of correctness connected to the report seems to be aimed toward shielding the engineer or skilled geologist from legal responsibility for title defects and the insurance coverage corporations from claims of improper denials of claims.”

The Courtroom additional defined that “even when this Courtroom have been to carry that part 627.7073(1)(c) is relevant within the context of different litigation, the plain language of the statute precludes the applying of part 90.304 to the presumption created in part 627.7073(1)(c),” as “[t]his language follows sections of laws that set up the requirement that such a report be obtained as a situation precedent to a denial of advantages.” For a courtroom to seek out that the Legislature “meant” to include part 90.304 right into a statutory presumption, the statute should explicitly present for the incorporation or present a transparent expression of such intent.

The Courtroom additionally rejected Common’s argument that part 627.7073(1)(c) is an expression of public coverage and must be ruled by part 90.304. Common argued that making use of the presumption in litigation would scale back the variety of disputed sinkhole claims and the general prices related to sinkhole losses. Discovering that Common’s justifications aren’t social insurance policies, the Courtroom held that the intent of the sinkhole laws was “particularly designed to guard the general public through the claims course of,” and Common’s purported social insurance policies weren’t superior by or included within the statutes.

Lastly, a overview of the invoice that enacted the statute (chapter 2005-111) and the workers analyses related to that invoice reveal that nothing in any of these paperwork signifies that the presumption articulated in part 627.7073(1)(c) is an expression of any social coverage, not to mention one which favors insurance coverage corporations. If in any respect, the statutory plan is designed to require that insurance coverage corporations have professional experiences within the claims course of earlier than denying a request for advantages.


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