Two Motions for Sanctions Pursuant to Florida Statute § 57.105 Granted – Orange County
On December 5, 2023, Butch Mathenia, Esq. of Scarborough Attorneys at Law successfully obtained sanctions against the Plaintiff glass shop and/or their attorney in two separate lawsuits, pursuant to Florida Statute § 57.105(1). The Plaintiff had submitted inflated invoices for windshield replacement services, prompting an investigation by the insurer. Following the investigation, the insurer issued payment in accordance with the insurance policy's terms and conditions, concurrently invoking the appraisal clause to resolve disputes related to the “amount of loss.”
Rather than complying with their contractual obligation to participate in appraisal, the glass shop filed suit for breach of contract. During the ensuing litigation, Mr. Mathenia persuasively argued that the insurance policy mandated the resolution of disputes over the amount of loss through the appraisal process. The court subsequently ordered the parties to complete the contractually required appraisal process. Competent and impartial appraisers, selected by each party, unanimously determined that the “amount of loss” was less than the pre-suit payment issued by the insurer.
Upon completion of the appraisal process, Mr. Mathenia advised the plaintiff's counsel that the claims for breach of contract lacked the material facts necessary to establish the claim. Accordingly, he demanded the withdrawal of the Complaint within the 21-day safe harbor period provided in Fla. Stat. § 57.105. When the plaintiff failed to dismiss the complaints within this period, Mr. Mathenia filed a Motion for Sanctions with the Court.
Subsequently, the Plaintiff filed Voluntary Dismissals without Prejudice. However, despite these dismissals, the court retained jurisdiction to address the motions for sanctions. Pursuant to Fla. Stat. § 57.105, the court is required to award sanctions if it determines that, at any time before trial, the plaintiff and/or their attorney knew or should have known that the breach of contract action was not supported by the material facts necessary to establish the claim.
During the hearing on the motions for sanctions, Mr. Mathenia argued that the Plaintiff's claim for breach of contract became unsupported by the material facts, specifically damages, at the conclusion of the appraisal process. Mr. Mathenia demonstrated to the Court that the insurance policy mandates that the amount determined by the appraisers is binding on the parties as to the “amount of loss”, and that the amount determined by the appraisers was less than the pre-suit payment issued by the insurer.
The Court agreed with Mr. Mathenia, determining that, at the close of the appraisal process, the plaintiff's claim for breach of contract lacked the material facts needed to establish the claim. It emphasized that the Plaintiff should have dismissed the claim within the 21-day safe harbor period provided by the statute. Due to the Plaintiff's failure to avail itself of the protections within Fla. Stat. § 57.105, the Court awarded the insurer its reasonable attorney's fees as a sanction against the Plaintiff.
Rather than incurring additional expenses by making supplementary payments to the glass shop and covering their legal fees, the defendant insurer will now receive payment.
Mr. Mathenia’s aggressive litigation strategy led to the successful resolution of these cases and exemplifies Scarborough Attorneys at Law’s commitment to skillful and strategic litigation. Through his diligent efforts, Mr. Mathenia not only navigated the complexities of insurance policies and contractual obligations but also secured sanctions against the Plaintiff for pursuing an unsupported breach of contract claim. This achievement underscores the firm’s expertise in handling litigation matters with precision and effectiveness. If you find yourself facing similar challenges or require legal assistance in navigating complex litigation issues, we encourage you to contact Scarborough Attorneys at Law. Our dedicated team is ready to provide the same level of expertise and advocacy to ensure your legal needs are met with the utmost professionalism. Reach out to us today for a consultation and let us guide you through the legal intricacies with confidence and competence.
