ELLIE'S 50'S DINER, INC., APPELLANT,
v.
CITIZENS PROPERTY INSURANCE CORPORATION, APPELLEE
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Ellie's 50's Diner appeals the denial of prejudgment interest on an insurance claim for property damage from Hurricane Wilma. The court affirmed the denial, holding that the insurance policy's thirty-day payment provision after the appraisal award controlled when interest accrued, and Citizens paid within that timeframe.
Ellie's was not entitled to prejudgment interest because the insurance policy terms specified that payment was due within thirty days after the filing of an appraisal award, and Citizens made payment within that prescribed period. The policy terms, not the date of loss, determine when coverage payment is due and when interest accrues.
[1] An insurance policy's terms dictate the date from which coverage payments and any associated interest are due.
[2] An insurer is not obligated to pay prejudgment interest on an appraisal award when payment is made within the timeframe specified in the insurance policy.
Previewing 2 of 3 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“It is the terms of a contract for insurance which determine the date from which the coverage payment is due, as well as when interest is due on the amounts payable.”
Establishes the controlling legal principle that contract terms, not the date of loss, determine when interest accrues on insurance payments.
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Join FLexlaw to unlock all legal intelligenceEllie's Diner was insured by Citizens Property Insurance when its property was damaged by Hurricane Wilma in October 2005. Citizens initially paid les…
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Ellie’s 50’s Diner, Inc. (“Ellie’s”) appeals the denial of a motion for prejudgment interest in its action against Citizens Property Insurance Corporation (“Citizens”). We affirm because the insurance policy provisions allotted Citizens thirty days within which to pay any appraisal award and Citizens made payment within the prescribed time period.
Ellie’s was insured by Citizens when its property was damaged by Hurricane Wilma in October 2005. Ellie’s submitted a claim and Citizens made payment to Ellie’s but for less than the amount sought by Ellie’s. In November 2006, Elbe’s filed a civil action against Citizens claiming that the amount paid by Citizens was insufficient and a breach of the policy. Citizens moved to compel an appraisal pursuant to the policy terms and the trial court granted this motion. On June 13, 2008, the appraisers entered an appraisal award which resulted in a further payment to Ellie’s. On July 10, 2008, Citizens paid Ellie’s the amount provided under the appraisal award.
Thereafter, Ellie’s filed a motion for prejudgment interest, claiming that it was entitled to prejudgment interest calculated from the date of loss. In response, Citizens argued that Ellie’s was not entitled to prejudgment interest because the insurance policy provided that Citizens had thirty days after the entry of an appraisal award within which to pay Ellie’s. Citizens relied on a “Loss Payment” provision in the policy that read, “Loss will be pay*1082able ... [tjhirty (30) days after we receive your proof of loss and ... [t]here is a filing of an appraisal award....” The trial court, noting the policy language, denied the motion for prejudgment interest.
On appeal, Elite’s argues that the trial court erred in not awarding prejudgment interest from the date its property was damaged. The loss payment provision of the subject policy, however, provided that Citizens was required to make payment within thirty days after the filing of an appraisal award. “It is the terms of a contract for insurance which determine the date from which the coverage payment is due, as well as when interest is due on the amounts payable.” See Citizens Prop. Ins. Corp. v. Mallett, 7 So.3d 552, 556 (Fla. 1st DCA 2009) (citing Lumbermens Mut. Cas. Co. v. Percefull, 653 So.2d 389 (Fla.1995)).
Thus, because Citizens paid the claim within the time allotted by the policy, Ellie’s was not entitled to receive prejudgment interest. See Sunshine State Ins. Co. v. Davide, 15 So.3d 749, 750 (Fla. 3d DCA 2009); Mallett, 7 So.3d at 556; Allstate Ins. Co. v. Blanco, 791 So.2d 515, 516 (Fla. 3d DCA 2001).
Affirmed.
POLEN and LEVINE, JJ., concur.
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State Farm Fla. Ins. Co. v. Silber, 72 So. 3d 286 (Fla. 4th DCA 2011)…have [*290] held that “ ‘[i]t is the terms of a contract for insurance which determine the date from which the coverage payment is due, as well as when interest is due on the amounts payable.’ ” Ellie’s 50’s Diner, Inc. v. Citizens Prop. Ins. Corp., 54 So. 3d 1081, 1082 (Fla. 4th DCA 2011) (quoting Citizens Prop. Ins. Corp. v. Mallett, 7 So. 3d 552, 556 (Fla. 1st DCA 2009)). We find the last sentence of the statute closes the door on any insured unless there is a viable independent cause of action. Because a…
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Green v. Citizens Prop. Ins. Corp., 59 So. 3d 1227 (Fla. 4th DCA 2011)…ave recently held that “'[i]t is the terms of a contract for insurance which determine the date from which the coverage payment is due, as well as when interest is due on the amounts payable.’” Ellie’s 50’s Diner, Inc., v. Citizens Prop. Ins. Corp., 54 So. 3d 1081, 1082 (Fla. 4th DCA 2011) (quoting Citizens Prop. Ins. Corp. v. Mallett, 7 So. 3d 552, 556 (Fla. 1st DCA 2009)). In Ellie's, as in the instant case, Citizens timely paid the claim pursuant to the appraisal process after first having paid the insured…
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Bilello v. State Farm Floridian Ins. Co., 58 So. 3d 440 (Fla. 4th DCA 2011)…PER CURIAM. Affirmed. See Ellie’s 50’s Diner, Inc. v. Citizens Prop. Ins. Corp., 54 So. 3d 1081 (Fla. 4th DCA 2011). GROSS, C.J., HAZOURI and CIKLIN, JJ., concur.…
Authorities Cited
- Lumbermens Mut. Cas. Co. v. Percefull, 653 So. 2d 389 (Fla. 1995)
- Citizens Prop. Ins. Corp. v. Mallett, 7 So. 3d 552 (Fla. 1st DCA 2009)
- Allstate Ins. Co. v. Roberto and Maria Blanco, 791 So. 2d 515 (Fla. 3d DCA 2001)
- Sunshine State Ins. Co. v. Davide, 15 So. 3d 749 (Fla. 3d DCA 2009)