Allen v. State Farm Fla. Ins. Co.
| Decision Date | 10 June 2016 |
| Docket Number | No. 2D15–3114.,2D15–3114. |
| Parties | Wayne ALLEN and Susan Allen, Petitioners, v. STATE FARM FLORIDA INSURANCE COMPANY, Respondent. |
| Court | Florida District Court of Appeals |
Wayne ALLEN and Susan Allen, Petitioners,
v.
STATE FARM FLORIDA INSURANCE COMPANY, Respondent.
No. 2D15–3114.
District Court of Appeal of Florida, Second District.
June 10, 2016.
George A. Vaka and Richard N. Asfar of Vaka Law Group, P.L., Tampa, and Kenneth C. Thomas and Barbara M. Hernando of Marshall Thomas P.L., Tampa, for Petitioners.
Scot E. Samis of Traub Lieberman Straus & Shrewsberry LLP, St. Petersburg, for Respondent.
SILBERMAN, Judge.
In this breach of contract action resulting from a sinkhole loss, Wayne and Susan Allen filed a two-count complaint against State Farm Florida Insurance Company and Federal Insurance Company. The Allens entered into a settlement with Federal, and Federal was dismissed with prejudice from this lawsuit. The Allens seek certiorari review of a discovery order that requires them to disclose their financial information regarding the settlement agreement the Allens reached with Federal. Disclosure of the settlement agreement containing financial information is premature when State Farm's liability has not been established and is a departure from the essential requirements of law that causes irreparable harm. Thus, we grant the petition and quash the discovery order.
The Allens' home was insured under a State Farm homeowners' policy from April 4, 2010, to April 4, 2011, and under a Federal homeowners' policy from April 4, 2011, to April 4, 2012. In January 2011, the Allens noticed what they believed to be normal settlement damage to their home. In September 2011, they noticed more significant damage to their home and filed a sinkhole claim with Federal. Federal denied the claim as preexisting and recommended that the Allens submit a claim with their prior insurer, State Farm. The Allens filed a claim with State Farm, and it denied the claim for an alleged failure to comply with the policy's obligation of immediate notice.
As a result, the Allens filed their complaint alleging breach of contract against Federal in count one and breach of contract against State Farm in count two. The Allens subsequently entered into a confidential settlement agreement with Federal as to count one, and the trial court
dismissed the action as to Federal with prejudice.
State Farm later filed a motion to compel disclosure of the settlement agreement between the Allens and Federal, and the Allens filed a motion for protective order. At a hearing on the motions, the Allens argued that a settlement agreement cannot be used to determine liability. The Allens argued, among other things, that disclosure was premature when State Farm was not conceding liability, and that if a verdict were entered and liability were established, “arguably it could be relevant at that point.”
State Farm asserted that if “the parties do try to enter into settlement negotiations, it would be helpful for State Farm to know how much has actually been paid already, so it can evaluate how much, if any, it is willing to pay or what would be required to pay.” The trial court found the settlement agreement “relevant to this case” and allowed the discovery.
To be entitled to certiorari relief from a discovery order, the trial court's ruling must be a departure from the essential requirements of law that causes material injury for the remainder of the proceedings that cannot be remedied on postjudgment appeal. Bd. of Trs. of Internal Improvement Trust Fund v. Am. Educ. Enters., LLC, 99 So.3d 450, 457 (Fla.2012) ; Allstate Ins. Co. v. Langston, 655 So.2d 91, 94 (Fla.1995) ; Ryan v. Landsource Holding Co., LLC, 127 So.3d 764, 766 (Fla. 2d DCA 2013). We address the second two elements, which are jurisdictional, and then address the merits of whether the ruling was a departure from the essential requirements of law. See Ryan, 127 So.3d at 767.
1. Irreparable Harm
Discovery of “cat out of the bag” material such as information that is protected by privilege, work product, or trade secrets may cause irreparable injury if disclosed. Langston, 655 So.2d at 94. Article I, section 23, of the...
To continue reading
Request your trial