Bencomo Enters. v. United Specialty Ins. Co.
Bencomo Enters. v. United Specialty Ins. Co.
Opinion of the Court
THIS CAUSE came before the Court on Defendant, United Specialty Insurance Company's Motion to Dismiss Counts I and II of Plaintiff's Amended Complaint [ECF No. 22], filed October 4, 2018. Plaintiff, Bencomo Enterprises, filed a Response in Opposition [ECF No. 24] to which Defendant filed a Reply [ECF No. 25]. The Court has carefully considered the Amended Complaint [ECF No. 19], the parties' submissions, the record, and applicable law. For the following reasons, the Motion is granted.
I. BACKGROUND
Plaintiff is the owner of insured commercial property located in Miami, Florida. (See Am. Compl. ¶ 2). Defendant issues commercial and homeowner insurance policies in Florida. (See id. ¶ 3). In consideration for premiums timely and fully paid, Defendant issued a contract of commercial property insurance (the "Policy") for Plaintiff's property, and it was in full force and effect at the time of the loss. (See id. ¶¶ 4-6).
On December 6, 2016, Plaintiff's insured property suffered a covered loss under the Policy. (See id. ¶ 8). Plaintiff timely reported the loss to Defendant. (See id. ¶ 9). To date, Defendant has paid Plaintiff $83,457.04 and $35,910.49, in two separate payments, for Plaintiff's loss under the Policy. (See id. ¶ 20).
Defendant does not deny coverage and admits some of the loss is covered under the Policy. (See id. ¶ 16). Nevertheless, the *1403parties dispute the amount Defendant owes Plaintiff and the specific coverage available under the Policy. (See id. ). Because of these disagreements, the parties participated in an appraisal proceeding as required by the Policy. (See id. ). The appraisal panel signed an appraisal award, calculating Plaintiff's losses to be $685,082.97. (See id. ¶ 19). Defendant has not paid Plaintiff since the appraisal award. (See id. ¶ 20).
On June 28, 2018, Plaintiff brought suit in the Eleventh Judicial Circuit in Miami-Dade County, Florida against Defendant asserting claims for declaratory relief and breach of contract. (See State Court Complaint [ECF No. 1-2] ). On August 21, 2018, Defendant removed the case on the basis of diversity jurisdiction under 28 U.S.C. section 1332. (See Notice of Removal [ECF No. 1] ¶ 4). Defendant then moved to dismiss the Complaint for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6) (see [ECF No. 7] ), which the Court granted without prejudice after Plaintiff failed to file a timely memorandum of law opposing the Motion (see September 13, 2018 Order [ECF No. 18] ).
On September 24, 2018, Plaintiff filed its Amended Complaint, which is the subject of the present Motion. The Amended Complaint states two claims for relief: first, Plaintiff asks the Court to confirm the entire appraisal award (Count 1) (see Am. Compl. ¶¶ 15-21); and second, Plaintiff brings a claim under the Florida Declaratory Judgment Act for a declaration of its rights under the insurance contract (Count 2) (see id. ¶¶ 22-34).
II. LEGAL STANDARD
"To survive a motion to dismiss [under Rule 12(b)(6) ], a complaint must contain sufficient factual matter, accepted as true, to 'state a claim to relief that is plausible on its face.' " Ashcroft v. Iqbal ,
To meet this "plausibility standard," a plaintiff must "plead[ ] factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged."
On a motion to dismiss, a court construes the complaint in the light most favorable to the plaintiff and accepts its factual allegations as true. See Brooks v. Blue Cross & Blue Shield of Fla., Inc. ,
The scope of review on a motion to dismiss under Rule 12(b)(6) is limited to the four corners of the complaint. See Speaker v. U.S. Dep't of Health and Human Servs. Ctrs. for Disease Control and Prevention ,
III. ANALYSIS
A. Count I -- Confirmation of Appraisal Award
Defendant first moves to dismiss Plaintiff's claim to confirm the appraisal award. (See Mot. 5). Defendant asserts there is no cognizable claim for confirmation of an appraisal award in Florida. (See id. 5-6). Defendant relies on State Farm Florida Insurance Company v. Gonzalez ,
The Court agrees with Defendant that Plaintiff states a possible motion for relief, rather than a viable claim for relief. In Gonzalez , Florida's Third District Court of Appeal reversed the trial court's order granting insured's "Petition to Confirm Appraisal Award," because the trial court had "erroneously rejected [insurer's] argument that a Petition to Confirm is not authorized and that the Arbitration Code is not applicable to appraisal awards." Gonzalez ,
Numerous courts have corroborated the dictum in Gonzalez by treating a request for confirmation of an appraisal award as a motion for relief, rather than as an independent cause of action. See Chateaubleau Villas Condo Assoc., Inc. v. Mt. Hawley Ins. , No. 08-23180-CIV,
Plaintiff also contends that under Florida law, Defendant cannot challenge coverage as to any part of the appraisal award and the Court must therefore confirm the appraisal award in full. (See Resp. 3). Initially, the Court notes that even if true, Plaintiff's alternative argument cannot save its otherwise unviable claim. Cf. Cady & Cady Studios, Inc. v. State Farm Fire & Cas. Co. ,
In any event, the Policy contains an appraisal provision that unambiguously allows either party to dispute causation on any portion of the appraisal award and have the court resolve disputed coverage issues under the Policy. (See Reply 1-2). The Policy states:
[T]he appraisal shall not[ ] address which categories of the award, if any, are covered by this policy. The parties retain the right to have a court of competent jurisdiction determine which elements of the appraisal, if any, are covered under this policy based on the facts determined by the appraisal, the policy and applicable law. They also retain the right to have the court determine the cause(s) of the damage appraised, if there is any post-appraisal disagreement concerning causation.
(Loss Conditions -- Appraisal Amendatory Endorsement [ECF No. 19] 18
Plaintiff thus fails to state a claim for relief in Count I.
B. Count II -- Declaratory Judgment
Defendant also moves to dismiss Plaintiff's claim for declaratory relief. (See Mot. 9). Defendant makes two principal arguments.
*1406First, Defendant contends the claim fails to identify any issues that require the Court's declaration. (See id. 6-8). Second, Defendant contends the Court should dismiss the claim as superfluous because a breach of contract claim will resolve all the disputed issues (see id. 8-9). The Court addresses each argument in turn.
i. Whether Count II Sufficiently States a Claim for Declaratory Relief
First, Defendant states it cannot ascertain what declaratory relief Plaintiff is seeking. (See id. 7). Plaintiff does not respond to this point other than to state it "would like the Court to confirm the award," given the "appraisal has taken place." (Resp. 6).
The Court agrees with Defendant that, as pled, Plaintiff's claim for declaratory relief does not state a claim for relief. Plaintiff appears to recite factual allegations about the parties' dispute over portions of the appraisal award. (See Am. Compl. ¶¶ 22-34). Plaintiff acknowledges that "Defendant did not deny coverage," "Defendant admitted that some of the loss was covered," and the "parties [only] disagreed as to the amount of damages and coverage available under the Policy." (Id. ¶ 16 (alteration added) ). Even though Plaintiff recognizes the parties' dispute is over causation and coverage as to portions of the appraisal award, Plaintiff asks the Court to declare rights and obligations that have nothing to do with the appraisal award. Indeed, Plaintiff asks the Court to declare it "is entitled to the coverage and the rights afforded under the Policy, and that Defendant has an obligation to provide coverage for the Claim;" that "Defendant shall specifically perform under the Policy, and acknowledge coverage under the Policy for the Claim;" and that the Court should "[e]nforce the terms, conditions, rights or obligations under the Policy." (Id. 5 (alteration added) ).
Rather than seek relief the Court can provide, Plaintiff appears to request a general declaration that the rights and obligations of the Policy be enforced and that there is coverage for Plaintiff's insurance claim - assertions Defendant does not dispute. (See Mot. 4). Plaintiff's request for general declaratory relief is insufficient at the motion-to-dismiss stage. See Great Am. Ins. Co. v. Pino Kaoba & Assocs., Inc. , No. 08-20847-CIV,
Defendant nevertheless recognizes "there could be a cognizable cause of action as to the causation determination ...." (Mot. 8 (alteration added) ). The Court agrees. While the Court could infer Plaintiff wants the Court to determine the outstanding coverage and causation issues between the parties through its claim for declaratory relief, such is not the claim that appears and the Court will not do Plaintiff's job for it. See Helman v. Udren Law Offices, P.C. , No. 0:14-CV-60808,
Plaintiff thus fails to state a claim for relief in Count II.
ii. Whether Count II is Duplicative of a Breach of Contract Claim
Defendant also argues Plaintiff's claim for declaratory relief is duplicative and should be dismissed. (See Mot. 8-9 (citing cases) ). Defendant curiously references the duplicative claim of "breach of contract" (id. 8), and acknowledges "Plaintiff could assert a potentially cognizable breach of contract claim" on the issue of whether Defendant "owes under the terms of the insurance policy any additional amounts above and beyond the payments issued by [Defendant] pursuant to the Appraisal Award ...." (id. 8-9 (alterations added) ). Defendant insists the parties' "dispute can and should be resolved through a breach of contract claim" and the Court should exercise its discretion and deny Plaintiff's claim for declaratory relief. (Reply 3).
Plaintiff disagrees, insisting it states a plausible claim for relief under the Florida Declaratory Judgment Act. (See Resp. 4 (citing cases) ). Plaintiff argues the cases on which Defendant relies "do not even apply Florida's Declaratory Judgment Act ... and instead apply the Federal Declaratory Judgment Act ...." (Id. 4-5 (alterations added) ).
Plaintiff's argument fails to persuade. While Plaintiff purports to assert a claim for declaratory relief under the Florida Declaratory Judgment Act, the Court applies the federal Declaratory Judgment Act, 28 U.S.C. section 2201, because this case was removed to federal court on the basis of diversity jurisdiction. See Incredible Investments, LLC v. Fernandez-Rundle ,
Nevertheless, the Court also cannot agree with Defendant. The Court will not prematurely decline to entertain a sufficiently pled claim for declaratory relief on the basis of a hypothetical breach of contract claim. See Charboneau v. Quinn , No. 5:99-CV-192-OC-10C,
IV. CONCLUSION
Being fully advised, it is
ORDERED AND ADJUDGED that Defendant, United Specialty Insurance Company's Motion to Dismiss Counts I and II of Plaintiff's Amended Complaint [ECF No. 22] is GRANTED . The Amended Complaint [ECF No. 19] is DISMISSED without prejudice . Given the deadline to amend pleadings passed on October 18, 2018 (see Order Setting Trial and Pre-Trial Schedule [ECF No. 16] ), Plaintiff, Bencomo Enterprises, has until November 15, 2018 to file a second amended complaint that addresses the deficiencies outlined in this Order. This will be Plaintiff's final opportunity to amend its pleading.
DONE AND ORDERED in Miami, Florida, this 8th day of November, 2018.
The Court uses the pagination generated by the electronic CM/ECF database, which appears in the headers of all court filings.
Reference
- Full Case Name
- BENCOMO ENTERPRISES v. UNITED SPECIALTY INSURANCE COMPANY
- Cited By
- 6 cases
- Status
- Published