Filing Number: 784677
|
| Filing Accepted: 9/26/2024 |
| Last/Business Name
*
|
|
|
THE EIGHTY SECOND AVENUE REALTY TRUST
|
|
First Name |
|
|
|
| Street Address
*
|
|
24 W CHASE ST. |
| City, State Zip
*
|
|
PENSACOLA,
FL
32502
|
| Email Address
*
|
|
DANA@DANADREW.COM |
| Complainant Type:
*
|
|
Insured |
|
| Last/Business Name* |
|
THE EIGHTY SECOND AVENUE REALTY TRUST |
|
First Name |
|
|
| Policy # * |
|
1705042485 |
|
Claim #* |
|
05000002199 |
|
Attorney is Applicable
|
| Last Name* |
GREEN
First Name *
DENNIS
Initial
D.
|
| Street Address* |
|
P.O. BOX 146 |
| City, State Zip* |
|
GULF BREEZE
,
FLORIDA
32562
|
| Email Address * |
|
DENNIS@LAWOFFICEOFDENNISGREEN.COM |
|
|
| Insurer Type
*
|
|
 Authorized Insurer
 Unauthorized Insurer
|
|
|
| Insurer Name |
|
|
| Insurer Name* |
|
FIRST PROTECTIVE INSURANCE COMPANY
|
| Insurer Name* |
|
|
| Street Address* |
|
|
| City, State Zip* |
|
,
|
|
NAIC Company Code 10897 |
|
|
| Name of individual responsible for violation (if any):*
DONNA BRYANT-ROBINSON AND BRENDON GUINTHER
|
| Type of Insurance
*
Commercial Property & Casualty
|
|
|
| Reason for Notice
*
|
|
|
Unfair Trade Practice
|
|
|
*
Statutory provision(s) which the insurer allegedly violated.
|
|
|
|
| 624.155(1)(b)(1) |
|
Not attempting in good faith to settle claims when, under all the circumstances, it could and should have done so, had it acted fairly and honestly toward its insured and with due regard for her or his interests.
|
|
| 626.9541(1)(i)(3)(a) |
|
Failing to adopt and implement standards for the proper investigation of claims.
|
|
*
Specific policy language that is relevant to the violation.
Enter all words or phrases (one at a time) that should be used to filter.
A. Coverage
We will pay for direct physical loss of or damage to Covered Property at the premises described in the Declarations caused by or resulting from any Covered Cause of Loss.
E. Loss Conditions
4. Loss Payment
a. In the event of loss or damage covered by this Coverage Form, at our option, we will either:
(1) Pay the value of lost or damaged property;
(2) Pay the cost of repairing or replacing the
lost or damaged property, subject to b.
below;
(3) Take all or any part of the property at an
agreed or appraised value; or
(4) Repair, rebuild or replace the property with other property of like kind and quality, subject to b. below.
We will determine the value of lost or damaged property, or the cost of its repair or replacement, in accordance with the applicable terms of the Valuation Condition in this Coverage Form or any applicable provision which amends or supersedes the Valuation Condition.
b. The cost to repair, rebuild or replace does not include the increased cost attributable to enforcement of any ordinance or law
regulating the construction, use or repair of any property.
G. Optional Coverages
If shown as applicable in the Declarations, the following Optional Coverages apply separately to each item.
3. Replacement Cost
a. Replacement Cost (without deduction for depreciation) replaces Actual Cash Value in the Valuation Loss Condition of this Coverage Form.
d. We will not pay on a replacement cost basis for any loss or damage:
(1) Until the lost or damaged property is actually repaired or replaced; and
(2) Unless the repairs or replacement are made as soon as reasonably possible after the loss or damage.
|
| |
*
Facts and circumstances giving rise to the violation.
Enter all words or phrases (one at a time) that should be used to filter.
To: First Protective Insurance Company
500 International Parkway
Lake Mary, FL 32746
legalnotices@flhi.com; hzelinger@bressler.com; fbaez@bressler.com
Re: Insured: The Eighty Second Avenue Realty Trust
Policy Number: 1705042485
Claim Number: 05000002199
Loss Location: 24 West Chase Street Pensacola, FL 32502
Date of Loss: 06/01/2024
The Eighty Second Avenue Realty Trust (the “Insured”) owns commercial real estate property at 24 West Chase Street Pensacola, FL 32502 (the “Property”). Insured purchased a policy of insurance (the “Policy”) from First Protective Insurance Company (“Frontline”) that provided insurance coverage for the Property, on or about June 1, 2024 (the “Date of Loss”), further identified as policy number 1705042485.
On the Date of Loss, the Property suffered direct physical and ensuing damages as a result of fire, a covered peril under the Policy. The Property sustained extensive damages to the interior and exterior, including, but not limited to, the roof, trusses, interior walls, ceilings, flooring , and other such building components as notated in the estimate of damages as documented by Frontline throughout the Property under assigned the claim number 05000002199 (the “Claim”).
As a result of the Claim, Insured promptly hired Pro Clean Restoration (“Pro Clean”) to provide for the fire mitigation services on the Property. Insured provided Pro Clean’s scope of work and invoice for fire mitigation services in the amount of $143,243.75 said invoice and scope of work was transmitted to Frontline.
While Pro Clean was mitigating the fire damages, Insured hired Bear General Contractors, LLC, a Florida Certified General Contractor #CGC1523882, to perform an assessment of the Claim, who then provided a written estimate of damages and scope of work and fully executed contract in the amount of $1,264,754.00 which said documents were transmitted to Frontline for their adjustment of the Claim.
On or about July 29, 2024, Insured executed a requested notarized Sworn Proof of Loss in the amount of $1,322,431.70 (the “SPOL”). The SPOL was transmitted to Frontline long with the invoice and scope of work from Pro Clean Restorations, the estimate and scope of work from Bear General Contractors, LLC, along with receipts and invoices from Sunbelt Rentals, McComb Electrical Company, Elite Roofing, Elite Mechanical Systems, Bucco Construction Company, TK Elevator Corporation, and Creekwaste and Recycling for services rendered and materials furnished on the Property as a result of the Claim.
On or about August 1, 2024, Ms. Donna Bryant-Robinson, Independent Commercial Claims Adjuster on behalf of Frontline, issued a claim determination letter whereupon Frontline stated that they have completed their investigation of the Claim for lightning, fire, and smoke damage. Frontline stated that based on their investigation, coverage is being afforded for repairs based upon their investigation by Jack Ward Fire Consultants and Mr. Brendon Guinther, with Professional Adjusting Services.
Instead of utilizing and relying on the executed contact and replacement cost value contained in the Scope of Work as prepared by Bear General Contractors, LLC, Frontline instead intentionally chose to willfully ignore the cost incurred by the Insured and instead relied on the estimate and scope of repairs prepared by their own adjuster, Mr. Brendon Guinther, who somehow determined that the replacement cost value of the Claim was $923,480.43, less the recoverable depreciation of $32,278.09, less the non-recoverable depreciation of $15,861.83, less the deductible of $2,500.00, for a total Claim payment of $872,840.51, well shy of the Insured’s incurred cost of $1,322,431.70 (It should also be noted that the estimate prepared by Mr. Brendon Guinther fails to show the values used to determined how the actual cash value of this claim was determined).
Frontline has a systemic practice of underpaying and undervaluing insurance claims and systemically utilizes unfair and deceptive trade practices through these intentionally undervalued and under scoped estimates of damage and repair. Frontline’s modus operandi is that they intentionally undervalue and underpay the claim of damages as is the case in this instant matter by wrongfully and intentionally ignoring incurred costs and actual estimates and invoices for the services and materials needed to put the Property back into a pre-loss condition.
Insured contends that Frontline is grossly negligent in their claims handling process and/or they are engaged in systemic insurance fraud and/or committing negligent or intentionally misrepresentations for filing false insurance estimates and reports that are not prepared by those that lack the licensees to allow them to form a lawfully opinion as to proper scopes of repair and the associated costs thereof. This systemic intentional undervaluing of claims gives Frontline an unlawful retention of monies that rightfully and legally belong to their insureds.
Here, in this instant matter, Frontline relies on an estimate of damages prepared by an adjuster that lacks a Florida contractor’s license. A search of the Florida DBPR website shows that Mr. Brendon Guinther does not possess any such professional construction license to perform construction services either residential or commercial and therefore Mr. Brendon Guinther is not a subject matter expert in construction scopes of repair and thus lacks the fundamental qualifications to assert his opinion. Here, Frontline relied on Mr. Brendon Guinther’s incompetent and low-ball estimate in lieu of properly adjusting the Claim by using the estimates and invoices prepared by Florida licensed contractors and for work completed and costs incurred by the Insured. Frontline instead choose to intentionally burden the Insured with the cost of hiring the undersigned counsel in order to seek the compensation Insured is rightfully owed under the Policy.
Violations of Florida Statute §624.155(1)(b)(1):
Pursuant to Florida Statute §624.155(1)(b)(1), Frontline, has a duty to attempt, in good faith, to settle claims when, under all these circumstances, it could and should have done so, had it acted fairly and honestly towards the Insureds, and with due regard for their interests. Here in this instant matter, Frontline flagrantly breached these duties in the handling of this Claim for, inter alia, financial gain and profit, to wit: when Frontline refused to settle the claim on a replacement costs basis based on the contract and estimate from by Bear General Contractors, LLC for the proper replacement cost value for use with a good faith basis then to then make a proper determination of the actual cash value and net claim payment.
Frontline failed to exercise a good faith effort to properly adjust the Claim, as stated supra, and failed to pay an adequate amount of actual cash value as contractually required, and failed or refused to tender the necessary replacement cost value payments required under the Policy in order for the Insured to be indemnified for the required scope of work and repairs as identified in the SPOL and submitted to Frontline by the Insured.
Frontline was given multiple opportunities to inspect and properly adjust the Claim and yet somehow, Frontline relied on an incompetent low-ball estimate, which was written by an individual that lacked any construction industry licensure, that failed to properly identify the full scope of necessary repairs. Frontline was placed on notice of the severity of the damages, including the full scope of repairs as evidenced by Pro Clean and Bear General Contractors, LLC. Even in the face of this evidence, Frontline still refuses to reassess its estimate and final claim net payment amount. Frontline has been placed on notice of the severity of the damages since it first inspected the Claim, and multiple times thereafter, only to turn a blind eye and refuse to properly adjust and settle the Claim to the detriment of the Insured and in direct violation of Florida Statute §624.155(1)(b)(1) and in breach of the following Policy provisions:
A. Coverage
We will pay for direct physical loss of or damage to Covered Property at the premises described in the Declarations caused by or resulting from any Covered Cause of Loss.
E. Loss Conditions
4. Loss Payment
a. In the event of loss or damage covered by this Coverage Form, at our option, we will either:
(1) Pay the value of lost or damaged property;
(2) Pay the cost of repairing or replacing the
lost or damaged property, subject to b.
below;
(3) Take all or any part of the property at an
agreed or appraised value; or
(4) Repair, rebuild or replace the property with other property of like kind and quality, subject to b. below.
We will determine the value of lost or damaged property, or the cost of its repair or replacement, in accordance with the applicable terms of the Valuation Condition in this Coverage Form or any applicable provision which amends or supersedes the Valuation Condition.
b. The cost to repair, rebuild or replace does not include the increased cost attributable to enforcement of any ordinance or law
regulating the construction, use or repair of any property.
G. Optional Coverages
If shown as applicable in the Declarations, the following Optional Coverages apply separately to each item.
3. Replacement Cost
a. Replacement Cost (without deduction for depreciation) replaces Actual Cash Value in the Valuation Loss Condition of this Coverage Form.
d. We will not pay on a replacement cost basis for any loss or damage:
(1) Until the lost or damaged property is actually repaired or replaced; and
(2) Unless the repairs or replacement are made as soon as reasonably possible after the loss or damage.
Violations of Florida Statute §626.9541(1)(i)(3)(a):
Pursuant to Florida Statute §626.9541(1)(i)(3)(a), Frontline has a duty to adopt and implement standards for the proper investigation and settlement of claims. Here in this instant matter, for the aforementioned reasons and facts, it is obvious that Frontline was ill equipped to handle the Claim as it wrongfully contends that the Insureds’ replacement cost value damages was only $923,480.43, in direct contrast and conflict with the invoice and scope of work from Pro Clean Restorations, the estimate and scope of work from Bear General Contractors, LLC, along with receipts and invoices from Sunbelt Rentals, McComb Electrical Company, Elite Roofing, Elite Mechanical Systems, Bucco Construction Company, TK Elevator Corporation, and Creekwaste and Recycling for all of the services rendered and materials furnished on the Property as a result of the Claim.
Insured further contends that Frontline was incapable of and/or lacked the training to properly adjust the Claim. Insured further contends that Frontline is intentionally or negligently underestimating the value of damages in order to devalue the Claim to unjustly enrich itself and shareholders to the detriment of the Insured. Furthermore, the calculation that the replacement cost value of the Claim was $923,480.43 evidences the sheer gross negligence on the part of Frontline for their lack of proper training of its personnel and agents (Ms. Donna Bryant-Robinson & Mr. Brendon Guinther) to properly adjust a claim and is highly indicative that Frontline influences, trains, or instructs its personnel and agents to intentionally undervalue claims to the detriment of the Insured for the direct benefit of Frontline which in direct violation of Florida Statute §626.9541(1)(i)(3)(a) and in breach of the following Policy provisions:
A. Coverage
We will pay for direct physical loss of or damage to Covered Property at the premises described in the Declarations caused by or resulting from any Covered Cause of Loss.
E. Loss Conditions
4. Loss Payment
a. In the event of loss or damage covered by this Coverage Form, at our option, we will either:
(1) Pay the value of lost or damaged property;
(2) Pay the cost of repairing or replacing the
lost or damaged property, subject to b.
below;
(3) Take all or any part of the property at an
agreed or appraised value; or
(4) Repair, rebuild or replace the property with other property of like kind and quality, subject to b. below.
We will determine the value of lost or damaged property, or the cost of its repair or replacement, in accordance with the applicable terms of the Valuation Condition in this Coverage Form or any applicable provision which amends or supersedes the Valuation Condition.
b. The cost to repair, rebuild or replace does not include the increased cost attributable to enforcement of any ordinance or law
regulating the construction, use or repair of any property.
G. Optional Coverages
If shown as applicable in the Declarations, the following Optional Coverages apply separately to each item.
3. Replacement Cost
a. Replacement Cost (without deduction for depreciation) replaces Actual Cash Value in the Valuation Loss Condition of this Coverage Form.
d. We will not pay on a replacement cost basis for any loss or damage:
(1) Until the lost or damaged property is actually repaired or replaced; and
(2) Unless the repairs or replacement are made as soon as reasonably possible after the loss or damage.
For the foregoing reasons, Frontline is in direct violation of Florida Statutes §624.155(1)(b)(1) and §626.9541(1)(i)(3)(a) and in breach of the above referenced Policy Provisions.
This notice is given in order to perfect the right to pursue the civil remedy authorized by Section 624.155, Florida Statutes, should Frontline fail to cure the violations set forth in this Civil Remedy Notice within the given cure period.
Therefore, to cure the defects outlined in this Civil Remedy Notice, Frontline must tender $447,091.19 which is calculated by the actual cash value, and all replacement cost value of all incurred expenses, minus any prior payments and applied deductible, pursuant to the Policy, as related to the SPOL provided by the Insured to Frontline, that would reasonably place the Insured’s Property back to its pre-loss condition.
$1,322,431.70 Insured’s Incurred RCV
-$872,840.51 Prior Payments
-$2,500.00 Deductible=
$447,091.19 Disputed Cure Amount
GOVERN YOURSELF ACCORDINGLY
Truly Yours,
Dennis D. Green, Jr., Esq.
|
|
|
*
|
The submitter hereby states that this notice is given in order to perfect the rights of the
person(s) damaged to pursue civil remedies authorized by Section 624.155, Florida Statutes.
Before submitting a Notice using this system, please verify that all text has been entered
correctly and completely. Once the Notice has been submitted, the text cannot be changed
or deleted.
|
DFS-10-363
Rev. 10/14/2008
|