Civil Remedy Notice of Insurer Violations
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Filing Number:     788750
Filing Accepted:  10/25/2024
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Complainant
Last/Business Name *  
ODC CONSTRUCTION, LLC   First Name  
Street Address * 5701 CARDER ROAD
City, State Zip * ORLANDO, FL 32810
Email Address * BO.SUTTON@THOMPSONJAGLAL.COM
Complainant Type: * Third Party
Insured
Last/Business Name*   GUERRERO MASONRY CONSTRUCTION INC.   First Name  
Policy # * GLP 0148099 00 Claim #* 121163
Attorney
Attorney is Applicable
Last Name* SUTTON First Name * ROUSELLE Initial A
Street Address* 4767 NEW BROAD STREET
City, State Zip* ORLANDO , FLORIDA 32814
Email Address * BO.SUTTON@THOMPSONJAGLAL.COM
Violation
Insurer Type *   Authorized Insurer Unauthorized Insurer
 
Insurer Name*   AMERICAN BUILDERS INSURANCE COMPANY
NAIC Company Code 11240
 
Name of individual responsible for violation (if any):* JASON MART
Type of Insurance * Commercial Property & Casualty   
Reason for Notice *
Claim Denial
Claim Delay
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.
626.9541(1)(i)(3)(c) Failing to acknowledge and act promptly upon communications with respect to claims.
626.9541(1)(i)(3)(f) Failing to promptly provide a reasonable explanation in writing to the insured of the basis in the insurance policy, in relation to the facts or applicable law, for denial of a claim or for the offer of a compromise settlement.
* Specific policy language that is relevant to the violation.
Enter all words or phrases (one at a time) that should be used to filter.

American Builders Insurance Company / Association Insurance Company has refused to timely acknowledge a lawsuit made against its insured and its additional insured. American Builders Insurance Company / Association Insurance Company has refused to timely acknowledge a tender of claim against its insured made by its additional insured. American Builders Insurance Company / Association Insurance Company has refused to respond to a lawsuit made against its insured and its additional insured. American Builders Insurance Company / Association Insurance Company has refused to defend its insured against a pending lawsuit. American Builders Insurance Company / Association Insurance Company has refused to defend its additional insured against a pending lawsuit.
 
* Facts and circumstances giving rise to the violation.
Enter all words or phrases (one at a time) that should be used to filter.

Guerrero Masonry Construction Inc. performed work for ODC Construction LLC to construct a home located at 14790 Fells Lane, Orlando FL 32827. ODC Construction LLC self-performed no work. Guerrero Masonry Construction Inc’s work was Completed during American Builders Insurance Company’s / Association Insurance Company’s policy. Completed Operations Coverage is triggered. American Builders Insurance Company / Association Insurance Company has, albeit late, denied the claim based on coverage reasons not supported by Florida Law. Guerrero Masonry Construction Inc is out of business and is unable to contest the bad faith claim denial and American Builders Insurance Company / Association Insurance Company is taking advantage of that. On April 18, 2023, homeowners (Martha L. Viviano, Ramesh and Aparna Vanapalli, Katarzyna J. and Johnathon D. Lambert, Jorge A. Figueroa and Patricia A. Gongora, Saji and Elizabeth John, Weam Mohamed Farid and Nevine M. Akef Farid, Richard Lazzari) filed suit against Meritage Homes of Florida, Inc. for claims arising out of Guerrero Masonry Construction Inc.’s work. On February 16, 2024, homeowners (Ramesh Vanapalli and Aparna Vanapalli) filed an arbitration against Meritage Homes of Florida, Inc. for claims arising out of Guerrero Masonry Construction Inc’s. work. On March 21, 2024 Meritage Homes of Florida, Inc. filed a Third Party demand for arbitration against ODC Construction LLC for claims arising out of Guerrero Masonry Construction Inc.’s work. On July 16, 2024, ODC Construction LLC filed a Complaint in the Ninth Judicial Circuit, In Orange County Florida under case No 2024-CA-006348-O (Lawsuit). In the suit ODC Construction LLC named Guerrero Masonry Construction Inc. as a defendant and alleged Guerrero Masonry Construction Inc. was liable claims for arising out of Guerrero Masonry Construction Inc.’s work at the project (14790 Fells Lane, Orlando FL 32827). On July 15, 2024, ODC Construction LLC served American Builders Insurance Company / Association Insurance Company with a Notice of Construction Defect Claim under policy No. GLP 0148099 00, which was in effect from 4/23/13 – 4/23/14. In this notice American Builders Insurance Company / Association Insurance Company was requested to: Provide ODC Construction LLC with indemnity, defense and additional insured rights, defend Guerrero Masonry Construction Inc., provide the letter to all affected insurers, participate in early settlement efforts, and provide the requested insurance information. ODC’s correspondence was sent to American Builders Insurance Company / Association Insurance Company because it insured Guerrero Masonry Construction Inc. who worked on the project (14790 Fells Lane, Orlando FL 32827), Guerrero Masonry Construction Inc.’s contract required it to have ODC Construction LLC named as an Additional Insured on all applicable policies. Guerrero Masonry Construction Inc.’s April 15, 2013 Certificate of Insurance identifies ODC Construction LLC as an Additional Insured on American Builders Insurance Company / Association Insurance Company Policy GLP 0148099 00 for 2013-04-23 to 2014-04-23. On September 3, 2024, ODC Construction LLC again served American Builders Insurance Company / Association Insurance Company with a follow up Notice of Construction Defect Claim, renewing the same request made on July 15, 2024. This request like the previous, was completely ignored. American Builders Insurance Company’s / Association Insurance Company’s actions have willfully, wantonly, and maliciously placed their own interest above that of its insured Guerrero Masonry Construction Inc. and of ODC Construction LLC as an Additional Insured. On October 7, 2024, American Builders Insurance Company / Association Insurance Company issued a claim denial based on two incorrect propositions, neither are supported by Florida Law: Reason #1. The home was not completed until the Certificate of Occupancy was issued on 02/24/2014 which was after the policy expired on 07/23/2013. Response #1. The Certificate of Occupancy does not control when the Completed Operations coverage kicks in. The invoices establish that "Your Work" was completed during the policy. Reason #2. The claimants did not purchase the home until 04/19/2016 which was after the policy expired on 07/23/2013. Response #2. The timing of the subsequent purchaser’s purchase is correct, but the home was damaged during American Builders Insurance Company’s / Association Insurance Company’s policy. When a particular person was an owner has no bearing on whether the occurrence under the policy is a covered loss. American Builders Insurance Company’s / Association Insurance Company’s coverage position is completely unfounded under Florida law applicable to insurance coverage. Under the policy, the Occurrence is the damage to other property. Here, that would be the paint, sealant, etc. The damage to other property is not tied to who owns the property at a given point of time. It is the other property that has been damaged and requires repair, not who owns the property. A request was made to American Builders Insurance Company / Association Insurance Company for Florida case law that holds that a homeowner must be the owner during a policy period in order to be compensated for damage to the home during that policy period. No response was provided. Currently, litigation is still pending against both Guerrero Masonry Construction Inc. and ODC Construction LLC and American Builders Insurance Company / Association Insurance Company has failed to: defend its insureds as required by the policy and to resolve the claim in good faith. American Builders Insurance Company / Association Insurance Company and its adjuster are acting in bath faith, relying on coverage positions not supported by Florida law, and taking advantage of the fact the named insured is dissolved and unable to defend itself against the bad faith claim handling.
Comments
User Id Date Added Comment
j.mikell@thompsonjaglal.com 11-06-2024 The issues raised in the Civil Remedy Notice have been resolved by the Insurer.
Acknowledgement
* 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