EDWARDS
v.
SAFEGUARD INSURANCE
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Florida Statute § 627.737(4) precludes the recovery of punitive damages in any action against an automobile liability insurer for damages exceeding policy limits, including common law third-party bad faith claims.
Plaintiff brought a common law third-party bad faith action against an automobile liability insurer, seeking punitive damages for amounts exceeding po…
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WHITTEMORE, District Judge.
BEFORE THE COURT is Defendant’s Motion to Dismiss Count II of the Amended Complaint (Dkt.223), in which Defendant contends that Count II fails to state a claim upon which relief can be granted in that Florida Statute § 627.737(4) precludes the recovery of punitive damages in this common law third party bad faith action. The parties have filed supplemental memo-randa addressing the applicability of Florida Statute § 627.737(4). (Dkt.200, 204).
Florida Statute § 627.737(4), as amended in 1977, provides in pertinent part:
In any action brought against an automobile liability insurer for damages in excess of its policy limits, no claim for punitive damages shall be allowed.
Acknowledging the clear language of this statute, Plaintiff argues that it applies solely to the “Florida Motor Vehicle No-Fault Law” and has “no application in a contractual action for common law bad faith.” (Dkt. 200 at p. 2). Alternatively, Plaintiff argues that this statute applies only to tort actions, pointing to the title of § 627.737: “Tort exemption; limitation on right to damages; punitive damages.” (Dkt. 200 at p. 3).
Plaintiffs arguments are unpersuasive. The plain language of § 627.737(4) precludes an award of punitive damages in “any action” brought against an automobile liability insurer for damages in excess of its policy limits. In Florida, the plain meaning of the statutory language is the first consideration of statutory construction.
See e.g. Capers v. State,
678 So. 2d 330, 332 (Fla.1996). As Defendant correctly points out, when the language of a statute is unambiguous and conveys a clear and ordinary meaning, there is no reason to resort to other rules of statutory construction.
Verizon Flori
*1265
da, Inc. v. Jacobs,
810 So. 2d 906, 908 (Fla.2002).
To the extent Plaintiff points to the title of § 627.737 in support of his argument, the Court is not persuaded. In Florida, the arrangement and classification of laws for purposes of codification in the Florida Statutes is deemed to be an administrative function of the Florida legislature and is not determinative on the issue of legislative intent, although it may be persuasive in some circumstances.
State v. Bradford,
787 So. 2d 811, 819 (Fla.2001). Here, as Defendant accurately summarizes, the legislative history of § 627.737(4) supports application of that section to all actions against an automobile liability insurer for damages in excess of its policy limits.
The parties agree that no appellate decision in Florida has discussed the effect or application of § 627.737(4), other than
Nales v. State Farm Mut. Auto. Ins. Co.,
398 So. 2d 455, 456 (Fla. 2d DCA 1981).
Nales, in dicta,
discussed § 627.737(4) only in the context that it was added to § 627.737 in 1977, demonstrating the Florida Legislature’s awareness of the doctrine of punitive damages. This court’s independent research has revealed no Florida appellate decisions addressing the applicability of that section to a common law third party bad faith claim against an automobile insurer. The only decision cited to the court is a Florida circuit court decision,
Hollis v. Allstate Insurance Co.,
The plain language of § 627.737(4) renders it applicable to the instant action.
2
Accordingly, Defendant’s Motion to Dismiss Count II of the Amended Complaint (Dkt.223) is GRANTED. Florida Statute § 627.737(4) precludes recovery of punitive damages in this common law third party bad faith claim against Defendant, an automobile liability insurer, for damages in excess of its policy limits.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Authorities Cited
- Capers v. State, 678 So. 2d 330 (Fla. 1996)
- Verizon Fla., Inc. v. Jacobs, 810 So. 2d 906 (Fla. 2002)
- State v. Bradford, 787 So. 2d 811 (Fla. 2001)
- Dunn v. Nat'l Sec. Fire & Cas. Co., 631 So. 2d 1103 (Fla. 5th DCA 1993)
- Nales v. State Farm Mut. Auto. Ins. Co. & Cecil Cronan, 398 So. 2d 455 (Fla. 2d DCA 1981)
- Nanjunda Swamy, M.D. v. Caduceus Self Ins. Fund, Inc., 648 So. 2d 758 (Fla. 1st DCA 1994)
- Thompson v. State Farm Mut. Auto. Ins. Co. (# 09785), 670 So. 2d 1070 (Fla. 3d DCA 1996)