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Florida Insurance Guaranty Ass'n v. Pilings & Structures, Inc.

Citations: 616 So. 2d 532; 1993 Fla. App. LEXIS 3473; 1993 WL 84507Docket: No. 92-121

Court: District Court of Appeal of Florida; March 24, 1993; Florida; State Appellate Court

Narrative Opinion Summary

In this legal dispute, the appellant, Florida Insurance Guaranty Association (FIGA), challenged a judgment holding it liable for defense costs incurred by Pilings, an insolvent insurer, in a prior maritime-related injury case involving an employee. The central issue was whether the insurance policy held by Pilings, which included a maritime coverage endorsement, was classified as 'ocean marine' or 'wet marine' insurance, thereby exempting it from the Florida Insurance Guaranty Association Act under section 631.52. The court found that the policy did not meet these exclusions, instead aligning with 'workers’ compensation and employer’s liability' insurance, which falls under the Act's purview. The court referenced the case of Deshotels v. SHRM Catering Services, Inc. to reinforce that statutes focus on types of insurance policies rather than specific risks, although the exact interpretation was not critical to the decision. Ultimately, the court upheld the trial court's decision, affirming that Pilings was entitled to recover its litigation expenses from FIGA. This outcome clarified the scope of the Act, emphasizing its application to the types of insurance involved in this case, regardless of maritime risk endorsements.

Legal Issues Addressed

Classification of Insurance under Florida Law

Application: Pilings' insurance policy is classified under 'workers’ compensation and employer’s liability' insurance, categorized as 'casualty' insurance, which falls under the Act's coverage.

Reasoning: Instead, it aligns with the definition of 'workers’ compensation and employer’s liability' insurance, classified as 'casualty' insurance under section 624.605(1)(c).

Definition of 'Marine Protection and Indemnity' Insurance

Application: The maritime coverage endorsement in Pilings' policy was not considered 'marine protection and indemnity' insurance under Florida Statutes, and thus did not qualify as 'ocean marine' or 'wet marine' insurance.

Reasoning: The maritime coverage endorsement is determined not to be 'marine protection and indemnity' insurance as defined by Florida Statutes section 624.607(1)(b) (1985), and therefore does not qualify as 'ocean marine' or 'wet marine' insurance under section 631.52.

Florida Insurance Guaranty Association Act Exclusions

Application: The court determined that Pilings' insurance policy does not fall within the 'ocean marine' or 'wet marine' exclusions of the Florida Insurance Guaranty Association Act, allowing recovery of defense costs.

Reasoning: The court found that the insurance was neither category, affirming the trial court's ruling that allowed Pilings to recover its defense costs, attorney fees, and related expenses.

Statutory Interpretation of Insurance Policy Types

Application: The court referenced Deshotels v. SHRM Catering Services, Inc. to support the interpretation that statutes identify types of insurance policies rather than specific risks, although the determination of risk versus policy type was deemed unnecessary.

Reasoning: Pilings cites the case of Deshotels v. SHRM Catering Services, Inc., where the Louisiana Supreme Court emphasized that statutes identify types of insurance policies rather than specific risks.