JUAN B. SALAS, JUAN C. SALAS & OLGA SALAS vs. STATE FARM FLORIDA INSURANCE COMPANY
(Case No.: 06-11456 CA 05; Judge Jon I. Gordon; Date: May 12, 2008)

Defendant’s Attorneys:  MICHAEL P. RUDD and THERESA A. STRUB

BREACH OF CONTRACT:  This breach of contract lawsuit arose from an alleged water loss to the Plaintiffs’ property on or about March 14, 2005.  Prior to suit being filed, the insured's notified State Farm of an alleged water loss to their property.  However, the insured's did not notify State Farm about the alleged loss until almost three weeks after the loss occurred, and after the permanent repairs to the property had been completed.  Based on State Farm’s inability to properly investigate the alleged loss, the claim was denied.

The insured's subsequently filed suit, alleging that State Farm breached their contract of insurance with the insured's by failing to tender payment for a covered loss.  State Farm, in turn, alleged that the Plaintiffs were barred from recovery due to their failure to perform their duties after loss as set forth in their homeowners’ insurance policy.  Specifically, State Farm alleged that the Plaintiffs’ failure to timely notify State Farm of the loss and failure to perform reasonable and necessary temporary repairs precluded recovery.  State Farm also asserted an affirmative defense of fraud due to the fact that the Plaintiffs’ agents submitted falsely created contracts for repair in order to recover additional expenses from State Farm.

VERDICT:  A jury unanimously found that the Defendant did not breach their contract of insurance with the Plaintiffs and were therefore not liable for the alleged water loss.  Further, prior to the jury coming back with their decision, the Judge directed a verdict for the Defendant based on the fraud allegations set forth in trial.