Florida Supreme Court anSwerS CertiFied QueStion in altman v . Crum
Trial & Litigation Section Chair : Brandon Faulkner – Holland & Knight , LLP
In Altman Contractors , Inc . v . Crum & Forster Specialty Ins . Co ., 832 F . 3d 1318 ( 11th Cir . 2016 ), the Eleventh Circuit certified the following question to the Florida Supreme Court : Is the notice-and-repair process set forth in Chapter 558 , Florida Statutes , a “ suit ” within the meaning of the CGL policies issued by Crum & Forster to Altman Contractors ? The Florida Supreme Court recently answered in the affirmative . Altman Contractors , Inc . v . Crum & Forster Specialty Ins . Co ., 232 So . 3d 273 ( Fla . 2017 ).
Altman was the general contractor for a high-rise condominium . Crum & Forster ( C & F ) insured Altman . C & F ’ s policies stated that it had the right and duty to defend against any “ suit .” The policy defined “ suit ” to mean a “ civil proceeding ,” including an “ arbitration proceeding ” or “ any other dispute resolution proceeding ” that the insured submitted to with C & F ’ s consent .
The condominium association served Altman with Chapter 558 notices of construction defect claims . Altman notified C & F and demanded a defense and indemnifica tion . C & F denied
it had a duty to defend , reasoning that the notices did not constitute a “ suit .” So Altman hired its own counsel . The condominium
© Can Stock Photo / zimmytws association then supplemented its notice with additional claims and demanded that Altman correct them . C & F maintained its position but retained counsel for Altman under a reservation of rights . Altman objected to the counsel , demanded its original counsel , and requested reimbursement of fees and expenses . C & F denied Altman ’ s requests , Altman settled the claims without C & F ’ s involvement , and then Altman sued in the Southern District of Florida seeking a declaration that C & F owed it a duty to defend and indemnify .
The Southern District found the Chapter 558 process was not a “ suit ” under the policy . Therefore , the condominium ’ s notices did not trigger a duty to defend . So the Court entered summary judgment for C & F . Altman Contractors , Inc . v . Crum & Forster Specialty Ins . Co ., 124 F . Supp . 3d 1272 ( S . D . Fla . 2015 ). Altman appealed to the Eleventh Circuit , arguing that the Chapter 558 process is a “ suit ”
Chapter 558 process … is a voluntary dispute resolution mechanism through which parties may resolve claims without filing suit .
because it is a “ civil proceeding ” or “ proceeding ,” as defined by Black ’ s Law Dictionary and Merriam- Webster ’ s Dictionary , or otherwise constitutes an “ alternative dispute resolution proceeding .” The Eleventh Circuit certified the question above .
The Florida
Supreme Court held that the Chapter 558 process is not a “ civil proceeding ” under the policy because it is a voluntary dispute resolution mechanism through which parties may resolve claims without filing suit . But it noted that C & F ’ s policies broadened the definition of “ suit ” to include “[ a ] ny other alternative dispute resolution proceeding ” and that Black ’ s defines “ alternative dispute resolution ” as “[ a ] procedure for settling a dispute by means other than litigation .” It held that Chapter 558 falls within that definition and , in doing , noted that the Florida Legislature described Chapter 558 as “[ a ] n effective alternative dispute resolution mechanism ” in section 558.001 , Florida Statutes .
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