Articles Posted in US Court of Appeals for the Eleventh Circuit

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The Eleventh Circuit granted Gerber's petition for panel rehearing and vacated its prior opinion, substituting the following opinion. In this insurance dispute case, the court held that Gerber, as assignee, lacked Article III standing to bring a declaratory judgment class action against GEICO in the absence of a claim for money damages or substantial likelihood that the insured would suffer a future injury. Accordingly, the court vacated the district court's judgment because it had no jurisdiction to entertain this suit. The court instructed the district court to remand the case to the circuit court. View "A&M Gerber Chiropractic LLC v. GEICO General Insurance Co." on Justia Law

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The Eleventh Circuit dismissed this insurance dispute case, holding that Gerber, as assignee of the insured, did not have standing to bring a declaratory judgment class action against GEICO. In this case, the action did not assert any claims for money damages and there was no substantial likelihood that the insured would suffer a future injury. Accordingly, the court reversed and remanded with instructions to dismiss the complaint for lack of standing. View "A&M Gerber Chiropractic LLC v. Geico General Insurance Co." on Justia Law

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These appeals relate to life insurance policies that were issued by Sun Life to non-parties and that were subsequently acquired by Imperial. The district court dismissed all claims in both cases. The Eleventh Circuit held that Sun Life waived its opportunity to rely on non-forum law to interpret the policies at issue and thus interpreted the relevant policies under Florida law. In regard to Sun Life's complaint, the court affirmed the district court's dismissal of the fraud conspiracy and declaratory judgment counts; and vacated the dismissal of the RICO, RICO conspiracy, fraud, aiding and abetting fraud, and tortious interference with contractual relations counts. In regard to Imperial's complaint, the court affirmed the breach of contract count to the extent it asserted a breach of the rights-and-privileges clause. The court vacated the district court's dismissal of the breach of contract count to the extent it asserted a breach of the incontestability clause. The court remanded for further proceedings. View "Sun Life Assurance Company of Canada v. Imperial Premium Finance, LLC" on Justia Law

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The Eleventh Circuit vacated the district court's grant of summary judgment to AIG in an action filed by AGLIC claiming that AIG, acting as a primary insurer, improperly allocated settlement payments between two insurance policies on behalf of their mutual insured, Imperial. The court held that, because the interests of St. Paul and AGLIC were coextensive, there was an absence of complete diversity of citizenship, and the district court lacked the power to entertain the matter in the first place. Therefore, the court remanded with instructions to dismiss. View "National Union Fire Insurance Co. of Pittsburgh v. American Guarantee & Liability Insurance Co." on Justia Law

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The Airline Deregulation Act preempts a cause of action against an air ambulance provider based on a provision of the Florida Motor Vehicle No Fault Law, Florida Statutes 627.730–627.7405. The Eleventh Circuit held that the insured in this case sought to restrict the prices of the air carrier and the ADA preempted it from doing so. The court explained that the McCarran-Ferguson Act did not interfere with preemption because the balance billing provision, on which the action rests, has nothing to do with the relationship between an insurer and an insured and therefore does not regulate the business of insurance. View "Bailey v. Rocky Mountain Holdings, LLC" on Justia Law

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After transporters damaged cargo, Lloyds filed suit seeking to recover from the transporters the damages that Lloyds paid to its insured. The Eleventh Circuit explained that, because the transporters damaged one part of a machine that could not operate without the damaged part, the extent of the transporters' liability depended on whether the Montreal Convention or the waybill controlled. The court held that the district court erred in ruling that the Montreal Convention governed the transporters' liability, but rather, the waybill governed the transporters' liability. Because the waybill was ambiguous about the weight that should be used to calculate liability, the court remanded the case for the district court to address the issue in the first instance. View "Underwriters at Lloyds Subscribing to Cover Note B0753PC1308275000 v. Expeditors Korea Ltd." on Justia Law

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The Florida Supreme Court answered the Eleventh Circuit's certified question, stating that the notice and repair process set forth in Chapter 558 of the Florida Statutes is a "suit" within the meaning of the CGL policies issued by C&F to ACI. The state court explained that although the chapter 558 process did not constitute a civil proceeding, it was included in the policy's definition of suit as an alternative dispute resolution proceeding to which the insurer's consent was required to invoke the insurer's duty to defend the insured. In light of the state court's answer of the certified question, the court reversed the district court's grant of summary judgment for C&F, vacated the final judgment, and remanded to the district court for further proceedings. View "Altman Contractors, Inc. v. Crum & Forster Specialty Insurance Co." on Justia Law

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The Florida Supreme Court answered the Eleventh Circuit's certified question, stating that the notice and repair process set forth in Chapter 558 of the Florida Statutes is a "suit" within the meaning of the CGL policies issued by C&F to ACI. The state court explained that although the chapter 558 process did not constitute a civil proceeding, it was included in the policy's definition of suit as an alternative dispute resolution proceeding to which the insurer's consent was required to invoke the insurer's duty to defend the insured. In light of the state court's answer of the certified question, the court reversed the district court's grant of summary judgment for C&F, vacated the final judgment, and remanded to the district court for further proceedings. View "Altman Contractors, Inc. v. Crum & Forster Specialty Insurance Co." on Justia Law

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Southern-Owners filed suit seeking a declaratory judgment absolving it of the duty to indemnify or defend Easdon Rhodes, or the other defendants, in an underlying negligence suit. The Fifth Circuit affirmed the district court's grant of summary judgment, holding that the vehicle driven by Joshua Rhodes, one of Easdon Rhodes' members, did not qualify for coverage under the terms of the Endorsement, and, even if the vehicle had qualified, the existence of a separate insurance policy also covering the accident triggered the Endorsement's exclusion clause absolving Southern-Owners of its duties under the policy. View "Southern-Owners Insurance Co. v. Moore" on Justia Law

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This appeal arose out of the Ponzi scheme orchestrated by Scott Rothstein through his law firm, Rothstein Rosenfeldt Adler (RRA). Trustees of RRA filed suit alleging breach of contract and bad faith claims against insurance carriers that reached a settlement with Gibraltar and its executives after originally denying coverage. The Eleventh Circuit applied Florida law and exercised plenary review, holding that coverage was barred by a "professional services exclusion" found in each of the policies. Accordingly, the court affirmed the district court's grant of the insurers' motion to dismiss. View "Stettin v. National Union Fire Insurance Co." on Justia Law