Don Reid Ford, Inc. v. Feldman, 81-858
| Citation | 421 So.2d 184 |
| Decision Date | 06 October 1982 |
| Docket Number | No. 81-858,81-858 |
| Parties | DON REID FORD, INC., a Florida corporation, formerly known as Johnny Bolton Ford, Inc., for the use and benefit of Florida Insurance Guaranty Association, Inc., a Florida corporation, Appellant, v. Bennett G. FELDMAN and Gulf Insurance Company, Appellees. |
| Court | Court of Appeal of Florida (US) |
Robert W. Mixson and John W. Bussey, III, of Smalbein, Eubank, Johnson, Rosier & Bussey, P.A., Orlando, for appellant.
John Ward Smith of Rumberger, Kirk, Caldwell & Cabaniss, P.A., Orlando, for appellees.
The trial court entered a summary final judgment for appellees on the theory that the statute of limitations had run on appellant's subrogation claim, and this appeal follows. We affirm.
When Don Reid Ford, Inc., (under the former name of Johnny Bolton Ford, Inc.), was sued for damages because of the negligent operation of a motor vehicle by one of its employees, its liability insurer, Commonwealth Insurance Company (Commonwealth) retained appellee Feldman as counsel to defend the action for its insured. When Feldman failed to appear for trial, a final judgment by default was entered against Don Reid Ford, Inc., on March 20, 1978. Because Commonwealth was now bankrupt, Don Reid Ford, Inc., paid the judgment and made a claim against appellant Florida Insurance Guaranty Association, Inc. (FIGA). 1 FIGA paid Don Reid Ford, Inc., on February 5, 1980.
As subrogee of Don Reid Ford, Inc., FIGA filed this malpractice action on September 23, 1980, against Feldman and his malpractice insurer, seeking to recover the amount it had paid to Don Reid Ford, Inc. Feldman contended that the statute of limitations began to run on March 20, 1978, when the judgment was entered against Don Reid Ford, Inc., and that the present action was thus barred because it was filed more than two years from that date. 2 The trial court agreed and entered the summary final judgment.
We agree that the statute of limitations began to run on the malpractice action when the judgment was entered against the insured because of the alleged malpractice of the attorney. FIGA has only the cause of action which Don Reid Ford, Inc., had against the attorney or, alternatively, the cause of action which Commonwealth would have had against its attorney, and either cause of action arose when the judgment was entered against Don Reid Ford, Inc. See State Farm Mutual Automobile Insurance Co. v. Kilbreath, 419 So.2d 632, (Fla.1982); Dickerson v. Orange State Oil Co., 123 So.2d 562 (Fla.2d DCA 1960). The rule is summarized in the annotation in 91 A.L.R.3d 844 (1979) as follows:
Where insurers have brought actions for subrogation to recover, for injuries or damage...
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