Jackson v. Federal Ins. Co.

• Decision Date: 28 September 1994
• Docket Number: No. 93-2477,93-2477
• Citation: 643 So.2d 56
• Parties: 94 Ed. Law Rep. 1085, 19 Fla. L. Weekly D2060 Darron JACKSON, Appellant, v. FEDERAL INSURANCE COMPANY, a foreign corporation, Appellee.
• Court: Florida District Court of Appeals

Page 56

643 So.2d 56

94 Ed. Law Rep. 1085, 19 Fla. L. Weekly D2060

Darron JACKSON, Appellant, v. FEDERAL INSURANCE COMPANY, a foreign corporation, Appellee.

No. 93-2477.

District Court of Appeal of Florida Fourth District.

Sept. 28, 1994.

Rehearing Denied Oct. 28, 1994.

Reed S. Tolber of Reed Stewart Tolber, P.A., Fort Lauderdale, for appellant.

Paul R. Regensdorf, Robert D. McIntosh and Kimberly W. Cocalis of Fleming, O'Bryan & Fleming, P.A., Fort Lauderdale, for appellee.

GUNTHER, Judge.

Appellant, Darron Jackson (Jackson), plaintiff below, appeals a final order dismissing his complaint with prejudice. Because we hold the complaint states a valid action for declaratory relief, we reverse.

Jackson was injured on November 10, 1990, in an interscholastic football game while he was a student at Coconut Creek High School. As a result of the injury, Jackson suffered permanent paralysis of his right arm. Jackson then became a third party beneficiary of a disability insurance policy issued by appellee, Federal Insurance Company (company).

The policy, according to its terms, insures students of Broward County who take part in interscholastic sports. The amount of benefits for a total disability is $500,000.00. The policy provides, in pertinent part:

If within 180 days from the date of accident, accidental bodily injury:

(1) causes the Insured to be continuously and totally disabled; and,

(2) prevents the Insured from performing substantial and material duties and activities appropriate to his/her age and sex in any occupation in which he/she may have been engaged when disability began; or any occupation or employment for which he/she is fitted or could reasonably become fitted because of education, training, or experience for a period of six (6) months from the date such disability commenced,

The Company will pay:

(a) a benefit of 20% of the Amount of Benefit shown [$500,000.00] at the beginning of the seventh month of such disability; and,

(b) if thereafter such injuries shall continue to totally and continuously disable the Insured, a yearly benefit of 8% of the Amount of Benefit [$500,000.00] will be paid on each anniversary of the first payment until:

(1) the maximum benefits has been exhausted; or,

(2) total disability ends; or,

(3) the Insured dies, whichever occurs first.

Pursuant to the policy terms, Jackson has received the 20% payment ($100,000.00) at the beginning of the seventh month and has received two annual payments of 8% totalling $80,000.00.

This case arose because Jackson wants to enroll in a training or educational program and the parties disagree as to how such enrollment will affect his benefits. According to Jackson's reading of the policy, once he became totally disabled within 180 days of the accident, he was entitled to the full amount of the benefits ($500,000.00) even if he subsequently becomes employable through education or training. The company disagrees with Jackson's interpretation of the policy and responds by merely reciting the policy language stating that Jackson will continue to receive annual payments so long as he is "totally and continuously disabled." The company suggests that the benefits may cease in the event Jackson becomes employable by virtue of training or education, because Jackson may not then be "totally disabled." The company, however, has steadfastly refused to give Jackson a definitive answer as to whether he will in fact lose the benefits if he enrolls in a training or educational program.

Because of the uncertainty about his entitlement to the benefits, Jackson filed suit for declaratory relief. The trial court, after hearing arguments, dismissed the complaint with prejudice. The trial judge reasoned that there was no present controversy at the foundation of the suit, as Jackson had not enrolled in a training or education program and the company had not refused to make the next payment.

The goals of the Declaratory Judgment Act are to relieve litigants of the common-law rule that a declaration of rights cannot be adjudicated unless a right has been violated and to render practical help in ending controversies which have not reached the stage where other legal relief is immediately available. Bell v. Associated Independents, Inc., 143 So.2d 904 (Fla. 2d DCA 1962); see also State Dep't of Educ. v. Glasser, 622 So.2d 1003 (Fla. 2d DCA 1992), ...