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Humana, Inc. v. Department of Banking & Finance

Citations: 603 So. 2d 672; 1992 Fla. App. LEXIS 8929; 1992 WL 191326Docket: No. 91-2847

Court: District Court of Appeal of Florida; August 12, 1992; Florida; State Appellate Court

Narrative Opinion Summary

In this case, Humana, Inc. challenged a final order from the Florida Department of Banking and Finance requiring the company to remit $183 as unclaimed intangible property and imposing a $250 administrative fine for failing to report and remit the said amount under Chapter 717 of the Florida Statutes. The legal crux centered on whether a refund check issued by Humana to a former patient, which remained uncashed and unclaimed for over nine years, was deemed 'unclaimed.' Despite Humana's argument that the payee's inaction constituted a disclaimer of ownership, the court upheld the Department's position, interpreting 'unclaimed' in its common meaning as a lack of demand, thereby affirming the presumption of abandonment. The proceedings were based on a stipulation of facts rather than a formal hearing, leading to the court's conclusion that the check was indeed unclaimed property. The court gave deference to the Department's order, underscoring the substantial evidence supporting the presumption of abandonment and the legitimacy of the administrative fine imposed. Consequently, the Department's order was affirmed, maintaining the presumption of correctness.

Legal Issues Addressed

Administrative Enforcement and Penalties

Application: The Department's imposition of a $250 administrative fine for Humana's failure to report and remit the unclaimed amount was upheld.

Reasoning: Humana, Inc. is appealing a final order from Florida's Department of Banking and Finance, which mandated the company to remit $183 as unclaimed intangible property under Chapter 717 of the Florida Statutes and imposed a $250 administrative fine for failing to report and remit the amount.

Interpretation of 'Unclaimed' under Chapter 717, Florida Statutes

Application: The court interpreted 'unclaimed' to mean a lack of demand for the funds, thus supporting the Department's claim that the check was unclaimed due to the absence of a claim for over five years.

Reasoning: The court emphasized that 'unclaimed' should be understood in its common meaning, which implies a lack of demand for the funds.

Presumption of Abandonment

Application: The court affirmed the presumption of abandonment due to substantial evidence, as the refund check remained unclaimed for over nine years.

Reasoning: The court affirmed the Department's order, agreeing that there was substantial evidence indicating the presumptive abandonment of the refund check by the owner.

Stipulation of Facts in Administrative Proceedings

Application: The decision was based on a stipulation of facts rather than a formal hearing, which contributed to the court's findings.

Reasoning: Although Humana requested a formal hearing, it was cancelled in favor of a decision based on a stipulation of facts.