STONEWALL INS. CO., APPELLANT,
v.
W. W. GAY MECHANICAL CONTRACTOR, INC., APPELLEE
AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.
Stonewall Insurance appealed a declaratory judgment that determined coverage under its insurance policy. The court held that the insured was entitled to a declaratory judgment and attorney's fees because Stonewall unequivocally disclaimed coverage in letters, creating a real dispute, rather than merely reserving rights pending establishment of liability.
The court held that the insured was entitled to a declaratory judgment because the insurer's unequivocal disclaimer of coverage created a bona fide, actual, present and practical dispute between insurer and insured. The court also held that the insured was entitled to attorney's fees because the action resulted in a judgment in favor of the insured against the insurer under the insurance policy.
[1] An insurer's unequivocal disclaimer of coverage for certain claims, even before the insured's liability to a claimant is established, creates a real and present dispute j…
[2] A declaratory judgment action is appropriate when an insurer's "reservation of rights" letters unequivocally disclaim coverage, rather than merely preserving the insurer'…
Previewing 2 of 4 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“To the extent claimant's complaint was sufficiently specific to induce Stonewall to take a firm position that coverage was not afforded, thereby producing a real and present dispute between insurer and insured, the court was justified in finding 'a bona fide, actual, present and practical need for a declaration.'”
Establishes the standard for when a declaratory judgment action is ripe despite the insured's liability not yet being established.
Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceStonewall Insurance issued a policy to W.W. Gay Mechanical Contractor, Inc. When a claim was made against the insured, Stonewall sent letters unequivo…
The full statement of facts, procedural history, and disposition for this case are member content.
Join FLexlaw to unlock all legal intelligence© FLexlaw, Inc. — AI-generated enrichments are proprietary. All rights reserved.
Explore caselaw by topic → Browse Insurance Litigation cases and more on FLexlaw
SMITH, Acting Chief Judge.
An appeal from a circuit court judgment declaring the parties’ rights concerning liability coverage under Stonewall’s insurance policy. As against StonewalPs contention that suit under Chapter 86, Florida Statutes (1975) was premature because the insured’s liability to the claimant is not yet established, the circuit court properly held that Stonewall’s letters to the insured, unequivocally disclaiming coverage of certain of the claims, entitled appellee to a declaratory judgment. To the extent claimant’s complaint was sufficiently specific to induce Stonewall to take a firm position that coverage was not afforded, thereby producing a real and present dispute between insurer and insured, the court was justified in finding “a bona fide, actual, present and practical need for a declaration.” Okaloosa Island Leaseholders Ass’n, Inc. v. Okaloosa Island Auth., 308 So. 2d 120 (Fla.1st DCA 1975).
If Stonewall’s “reservation of rights” letters had stopped short of disclaiming liability and had sought only to preserve Stonewall’s right to contest coverage upon maturation of claimant’s action, the case would be different.
Because appellee’s action to establish its rights under the policy was justified, resulting in “rendition of a judgment or decree . . . against an insurer and in favor of an insured . . . under a policy or contract executed by the insurer,” the trial court’s award of attorney’s fees to the insured was likewise proper.
Section 627.-428(1), Florida Statutes (1975). We have considered such decisions as Manufacturers Life Ins. Co. v. Cave, 295 So. 2d 103 (Fla.1974) and Equitable Life Assur. Soc., etc. v. Nichols, 84 So. 2d 500 (Fla.1956), which hold that the insurer is not liable for fees when there has been no wrongful refusal to pay. Those decisions were concerned with an insurer’s neutral position in the face of conflicting claims by beneficiaries and are not authority for denying a fee award to an insured whose coverage is wrongfully repudiated by the insurer before determination of the insured’s liability to the claimant. Appellee’s motion for an allowance of fee money for the services of its counsel on appeal is also GRANTED, and the case is remanded for determination of the amount.
AFFIRMED.
ERVIN and MELVIN, JJ., concur.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Cited By
-
Fla. Farm Bureau Mut. Ins. Co. v. Gaskins, 405 So. 2d 1013 (Fla. 1st DCA 1981)…policy issued by appellant to appellee. Appellee’s request for an attorney’s fee award for his counsel’s appellate services is granted and the case is remanded for determination of the amount. Stonewall Ins. Co. v. Gay Mechanical Contractors, Inc., 351 So. 2d 403 (Fla. 1st DCA 1977). AFFIRMED. McCORD, J., and ERNEST E. MASON (Circuit Judge, Retired), Associate Judge, concur.…
-
Sentry Ins. v. Brown, 424 So. 2d 780 (Fla. 1st DCA 1982)…the contract for the purpose of determining Brown’s rights of renewal under the existing policy. Brown prevailed in that suit. We consider the issue in this cause to be analogous to that in Stonewall Insurance Co. v. W.W. Gay Mechanical Contractor, 351 So. 2d 403 (Fla. 1st DCA 1977), in which we held that an insured was entitled to a declaratory judgment on his right to coverage even though the insured’s liability to a third party had not yet been established, and, having prevailed on the declaratory judgmen…
-
Dixie Ins. Co. v. Gaffney, 582 So. 2d 64 (Fla. 1st DCA 1991)…actical need for a declaration.” May v. Holley, 59 So. 2d 636 (Fla.1952); Okaloosa Island Leaseholders Association, Inc. v. Okaloosa Island Authority, 308 So. 2d 120, 122 (Fla. 1st DCA 1975); Stonewall Ins. Co. W. W. Gay Mechanical Contractor, Inc., 351 So. 2d 403 (Fla. 1st DCA 1977); Strachan Shipping Company v. Spigner, 573 So. 2d 926 (Fla. 1st DCA 1991). We are of the view that Dixie’s declaratory judgment claim fails to satisfy such standard. It would be one thing if the basis of Dixie’s declaratory judg…
Previewing 3 of 5 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- The Equitable Life Assurance Soc'y OF the United States & Marjorie C. Walsh v. Nichols, 84 So. 2d 500 (Fla. 1956)
- Mfrs. Life Ins. Co. v. Ruthine Cave, 295 So. 2d 103 (Fla. 1974)
- Okaloosa Island Leaseholders Ass'n, Inc. v. Okaloosa Island Auth., 308 So. 2d 120 (Fla. 1st DCA 1975)