Explorer Ins. Co. v. Cajusma

• Decision Date: 06 November 2015
• Docket Number: Nos. 5D14–2608,5D14–2934.,s. 5D14–2608
• Citation: 178 So.3d 923
• Parties: EXPLORER INSURANCE COMPANY, Appellant, v. Renold CAJUSMA, Quilner Pade, et al., Appellees. Explorer Insurance Company, Appellant, v. Renold Cajusma, Quilner Pade, et al., Appellees.
• Court: Florida District Court of Appeals

178 So.3d 923

EXPLORER INSURANCE COMPANY, Appellant,

v.Renold CAJUSMA, Quilner Pade, et al., Appellees.

Explorer Insurance Company, Appellant,

v.Renold Cajusma, Quilner Pade, et al., Appellees.

Nos. 5D14–2608

5D14–2934.

District Court of Appeal of Florida, Fifth District.

Nov. 6, 2015.

Donald J. Masten and Jason M. Pugh, of Donald J. Masten, P.A., and David Popper, Orlando, for Appellant.

Chad A. Barr, of Law Office of Chad A. Barr, PA, Maitland and Earl I. Higgs, Jr. of Anthony–Smith Law, P.A., for Appellees.

PALMER, J.

Explorer Insurance Company (Explorer) timely appeals the final order entered by the trial court granting attorney's fees and costs in favor of Renold Cajusma (Case No. 14–2608), and the final order granting attorney's fees and costs in favor of Quilner Pade (Case No. 14–2934). The appeals arise from two separate final orders requiring Explorer, an automobile insurance company, to pay attorney's fees and costs after Explorer voluntarily dismissed its action for declaratory relief. We affirm as to Cajusma, but reverse as to Pade.

Explorer issued an automobile insurance policy to Cajusma, and Cajusma was in an automobile accident while driving the insured vehicle. Cajusma had two passengers, Philogene and Pade. Cajusma's vehicle collided with Luma's vehicle, which contained Johnson as a passenger. Cajusma, Pade, and Philogene sought treatment at a chiropractic clinic called Lancaster.

Johnson and Luma filed a claim against Cajusma for negligence. The terms of Cajusma's insurance policy provided liability coverage and required Explorer to defend and indemnify Cajusma in lawsuits covered by the policy. In addition to the negligence claims, Pade and Philogene filed Personal Injury Protection (PIP) claims under Cajusma's insurance policy.

Explorer initially denied the claims filed by Johnson and Luma. Thereafter, Johnson and Luma filed separate personal injury lawsuits against Cajusma. Lancaster also filed separate lawsuits against Explorer, seeking recovery for unpaid services provided to Cajusma and Pade. While the aforementioned lawsuits remained pending, Explorer filed a declaratory judgment action against Cajusma, Pade, Lancaster, Johnson, and Luma. The complaint alleged that Explorer should be relieved from the obligation to pay benefits and from providing liability coverage because material misrepresentations had been made in connection with those claims.

During the pendency of Explorer's declaratory judgment action, Cajusma filed a lawsuit against Explorer, alleging breach of contract for failure to pay his property damage claims and failure to provide him with a defense in the personal injury lawsuits. Cajusma and Explorer eventually entered into a settlement agreement in which Explorer paid Cajusma $10,250 in satisfaction of his claims under the insurance policy and for attorney's fees.

Cajusma and Pade filed motions for summary judgment in Explorer's still pending declaratory judgment action seeking attorney's fees and costs pursuant to section 627.428 of the Florida Statutes. At the summary judgment hearing, Explorer entered an ore tenus motion to voluntarily dismiss its action. The trial court granted Explorer's motion to dismiss, but expressly reserved its ruling regarding the pending claims for attorney's fees and costs.

The trial court thereafter entered separate orders granting the attorney's fees and costs motions. In the order granting attorney's fees and costs to Cajusma, the trial court ruled:

The Court finds the payment of the property damage and the agreement to provide Mr. Cajusma with a defense in the liability lawsuits operated as a confession of judgment regarding insurance coverage under the policy. Additionally, the Court finds Explorer's voluntary dismissal of its declaratory judgment action triggered Mr. Cajusma's entitlement to attorney's fees and costs. See Coppola v. Federated Nat. Ins. Co., 939 So.2d 1171, 1172–73 (Fla. 4th DCA 2006) (holding the liability insurer's voluntary dismissal of a declaratory judgment action conferred a benefit on the insured by providing a defense in the tort action, was thus the functional equivalent of a confession of judgment or verdict in favor of the insured, and entitled the insured to attorney's fees as the prevailing party—when the insurer dismissed the action, the insured received the benefit of representation in the underlying tort suit); Mercury Ins. Co. of Florida v. Cooper, 919 So.2d 491, 493 (Fla. 3d DCA 2005) (holding the insurer's unilateral decision to settle an insurance claim and dismiss a related declaratory judgment action triggers the insured's entitlement to attorney fees under the statute requiring court to award attorney fees upon rendition of a judgment or decree against an insurer and in favor of an insured); Unterlack v. Westport Insurance Co., 901 So.2d 387, 389 (Fla. 4th DCA 2005) (holding the liability insurer's voluntary dismissal of a declaratory judgment action against insured before settling suits against it was the functional equivalent of a confession of judgment or verdict in favor of the insured and entitled the insured to attorney's fees under statute requiring the insurer to pay attorney's fees upon the rendition of a judgment or decree against insurer); O'Malley v. Nationwide Insurance Co., 890 So.2d 1163, 1165 (Fla. 4th DCA 2004) (holding insured was entitled to award of attorney's fees as prevailing party following the liability insurer's voluntary dismissal of its declaratory judgment action that sought determination as to whether there was a duty to defend or coverage regarding the tort action and settled claim; the insurer provided precisely what the insurer contended the insured was not entitled to in the declaratory judgment action, and the dismissal was the functional equivalent of a confession of judgment or verdict in favor of the insured).

In granting Pade's motion for attorney's fees and costs, the trial court ruled:

The Court finds the payment of the property damage and the agreement to provide Mr. Cajusma with a defense in the liability lawsuits operated as a confession of judgment regarding insurance coverage under the policy. Additionally, the Court finds Explorer's voluntary dismissal of its declaratory judgment action triggered Mr. Pade's entitlement to attorney's fees and costs.

Because this appeal concerns the trial court's application of a statutory provision, the standard of review is de novo. See Do v. GEICO Gen. Ins. Co., 137 So.3d 1039, 1042 (Fla. 3d DCA 2014) (citing Jerkins v. USF & G Specialty Ins. Co., 982 So.2d 15, 16 (Fla. 5th DCA 2008) ). Section 627.428 of the Florida Statutes provides, in relevant part:

627.428 Attorneys' Fees

(1) Upon the rendition of a judgment or decree by any of the courts of this state against an insurer and in favor of any named or omnibus insured or the named beneficiary under a policy

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