Civil Remedy Notice of Insurer Violations
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Filing Number:     818805
Filing Accepted:  5/1/2025
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Complainant
Last/Business Name *  
CALATLANTIC GROUP, LLC   First Name  
Street Address * 5505 WATERFORD DISTRICT DRIVE
City, State Zip * MIAMI, FL 33126
Email Address * LKERR@COGBURNLEGAL.COM
Complainant Type: * Insured
Insured
Last/Business Name*   ROOF COMMANDER, INC.   First Name  
Policy # * VNGP001205 (2016/17); VNGP001314 (2017/18); AND VN Claim #* V000000130068
Attorney
Attorney is Applicable
Last Name* KERR First Name * LAUREN Initial D
Street Address* 777 S. HARBOUR ISLAND BLVD., SUITE 245
City, State Zip* TAMPA , FL 33602
Email Address * LKERR@COGBURNLEGAL.COM
Violation
Insurer Type *   Authorized Insurer Unauthorized Insurer
 
Insurer Name*   GEMINI INSURANCE COMPANY
NAIC Company Code 10833
 
Name of individual responsible for violation (if any):* UNKNOWN
Type of Insurance * Commercial Property & Casualty   
Reason for Notice *
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.
626.9541(1)(i)(3)(g) Failing to promptly notify the insured of any additional information necessary for the processing of a claim.
* Specific policy language that is relevant to the violation.
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Roof Commander, Inc. (“Roof Commander”) purchased at least three commercial general liability (“CGL”) policies from Gemini Insurance Company (“Gemini”), specifically, policy numbers VNGP001205 (2016/17); VNGP001314 (2017/18); and VNGP001393 (2018/19)) (collectively, the “Policies”). The insuring agreement of the Policies state: We will pay those sums that the insured becomes legally obligated to pay as damages because of … “property damage” to which this insurance applies. We will have the right and duty to defend the insured against any “suit” seeking those damages … The Policies define “property damage” to include: a. Physical injury to tangible property, including all resulting loss of use of that property … or b. Loss of use of tangible property that is not physically injured … For coverage to be afforded, “property damage” must have been caused by an “occurrence,” which is defined under the Policies as “an accident, including continuous or repeated exposure to substantially the same general harmful conditions.” Not only do the Policies provide coverage to the named insured, Roof Commander, they also provide coverage to CalAtlantic Group, LLC (“CalAtlantic”) as an additional insured. CalAtlantic Group, LLC was formerly known as CalAtlantic Group, Inc., which was successor by merger to The Ryland Group, Inc. The Policies contain the following endorsement in same or substantially similar part: ADDITIONAL INSURED – OWNERS, LESSEES OR CONTRACTORS – SCHEDULED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART A. Section II – Who Is An Insured is amended to include as an additional insured the person(s) or organization(s) shown in the Schedule . . . SCHEDULE Name Of Additional Insured Person(s) Or Organization(s) Any person or organization when you and such person or organization have agreed, in writing in a contract, prior to an occurrence … that causes “property damage” … that such person or organization be added as an additional insured on your policy. Beyond this “blanket” form endorsement, the 2018-19 Policy expressly names “CalAtlantic Group, Inc., The Ryland Group, Inc., and its affiliates, the Owner, and Affiliated Entities of each” as an additional insured. The Policies also contain nearly identical endorsements extending coverage to Roof Commander’s completed operations. On May 4, 2015, Roof Commander entered into a subcontract with The Ryland Group, Inc. to perform ongoing roofing work, including the project at issue in the below-described lawsuit. The contract required Roof Commander to name “The Ryland Group, Inc. and its subsidiaries, affiliated and successor companies, officers, directors, agents, servants, employees, divisions, partners, and shareholders” as additional insureds on its policies of insurance. Accordingly, CalAtlantic Group, LLC (f/k/a CalAtlantic Group, Inc.) is an additional insured under the Policies.
 
* Facts and circumstances giving rise to the violation.
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This civil remedy notice is being filed because Gemini Insurance Company (“Gemini”) has failed to address CalAtlantic Group, LLC’s (“CalAtlantic”) tenders of defense in good faith. The Gemini policies implicated are policy numbers VNGP001205 (2016/17); VNGP001314 (2017/18); and VNGP001393 (2018/19)) (collectively, the “Policies”). CalAtlantic has been named as a defendant in a lawsuit styled as Sweetwater Ridge Townhomes Owners Association, Inc., Case No. 2021-CA-1032, Lake County, Florida (the “Lawsuit”). The Lawsuit alleges property damage resulting from work performed at the Sweetwater Ridge townhome community (the “Project”), including the roofing work performed by CalAtlantic’s subcontractor, Roof Commander, Inc. (“Roof Commander”). During original construction, Roof Commander performed work at the Project pursuant to a subcontract agreement with The Ryland Group, Inc. CalAtlantic Group, LLC was formerly known as CalAtlantic Group, Inc., which was successor by merger to The Ryland Group, Inc. (“Ryland”). Included in the subcontract between Ryland and Roof Commander was a requirement that Roof Commander would secure commercial general liability ("CGL") insurance and name Ryland and its successors and affiliates as additional insureds on its policies of insurance. Roof Commander purchased at least three CGL policies, the Policies, from Gemini, which provide ongoing and products-completed operations coverage for liability because of property damage resulting from Roof Commander’s work. This coverage extends to both the named insured, Roof Commander, and the additional insured, CalAtlantic. As described supra, the Policies extend coverage to additional insureds where required by contract. Because the written subcontract between Ryland and Roof Commander required Roof Commander to name Ryland and its successors and affiliates as additional insureds, and CalAtlantic is the successor to Ryland, CalAtlantic is an additional insured under the Policies. Moreover, on the 2018-19 policy, CalAtlantic is a named additional insured. CalAtlantic tendered its defense to Gemini numerous times, including on October 2, 2020, January 29, 2021, and November 9, 2021. Since that time over four years ago, Gemini has failed to issue a coverage decision nor has Gemini provided CalAtlantic with a defense in the Lawsuit. Gemini’s refusal to provide a defense to CalAtlantic is knowingly wrongful because the Lawsuit, as pled, implicates coverage under the Policies and does not clearly implicate any exclusions under the Policies. "Under Florida law, an insurer's duty to defend its insured against legal action is quite broad, and 'is determined by comparing the allegations contained within the four corners of the underlying complaint with the language of the policy.'" Zurich Am. Ins. Co. v. Southern- Owners Ins. Co., 314 F. Supp. 3d 1284, 1299 (M.D. Fla. 2018) (Howard, J.) citing Addison Ins. Co. v. 4000 Island Blvd. Condo. Ass'n, Inc., 263 F. Supp. 3d 1266, 1269 (S.D. Fla. 2016) (quoting Jones v. Fla. Ins. Guar. Ass'n Inc., 908 So. 2d 435, 443 (Fla. 2005)). That is, an insurer's duty to defend is determined solely by the allegations in the underlying complaint. Zurich, 314 F. Supp. 3d at 1299 citing Category 5 Mgmt. Grp., LLC v. Companion Prop. & Cas. Ins. Co., 76 So. 3d 20, 23 (Fla. 1st DCA 2011); Lawyers Title Ins. Corp. v. JDC (Am.) Corp., 52 F. 3d 1575, 1580 (11th Cir. 1995). "The duty arises when the relevant pleadings allege facts that 'fairly and potentially bring the suit within policy coverage.'" Id. citing Lawyers Title Ins. Corp., 52 F. 3d at 1580 (quoting Lime Tree Vill. Cmty. Club Ass'n, Inc. v. State Farm Gen. Ins. Co., 980 F. 2d 1402, 1405 (11th Cir. 1993)). The actual facts of the situation are not relevant, such that "the insurer must defend even if facts alleged are actually untrue or legal theories unsound." Id. As a result, "an insurer's duty to defend is distinct from, and broader than, the duty to indemnify," Id. citing Sinni v. Scottsdale Ins. Co., 676 F. Supp. 2d 1319, 1323 (M.D. Fla. 2009), which "must be determined by analyzing the policy coverage in light of the facts in the underlying case," J.B.D. Constr., Inc. v. Mid-Continent Cas. Co., 571 F. App'x 918, 927 (11th Cir. 2014) (emphasis added). In addition, where an injured party "alleges facts partially within and partially outside the coverage of the policy, the insurer is obligated to defend the entire suit." Category 5 Mgmt. Grp., LLC, 76 So. 3d at 23. Gemini appears to be employing a misguided strategy of simply ignoring CalAtlantic’s tender of defense in an effort to avoid paying the defense costs to which CalAtlantic is entitled. Gemini’s failure to defend CalAtlantic has prejudiced and damaged CalAtlantic. Due to Gemini’s unreasonable claims handling practices, CalAtlantic has been and will be forced to incur significant defense costs in the Lawsuit, for which Gemini is responsible. The Lawsuit includes allegations of losses covered under the Policies. Under Florida law, Gemini’s duty to defend CalAtlantic was triggered by the Plaintiff’s allegations, whether they are proven to be true or not. The attorneys' fees and costs that CalAtlantic has incurred have unjustly burdened CalAtlantic. Moreover, by refusing to defend CalAtlantic, Gemini has greatly exposed its named insured, Roof Commander, to a much larger claim for CalAtlantic’s defense costs in this matter pursuant to the contractual indemnification provisions in the subcontract. Gemini must exercise its duty of good faith to CalAtlantic and must employ “the same degree of care and diligence as a person of ordinary care and prudence should exercise in the management of his own business.” Farinas v. Florida Farm Bureau Gen. Ins. Co., 850 So. 2d 555 (Fla. 4th DCA 2003) (internal citations omitted). Under Farinas, Gemini is obligated to (1) fully investigate all claims at hand to determine how to best limit its insured’s liability; (2) seek to settle as many claims as possible within the policy limits; (3) minimize the magnitude of possible excess judgments against its insureds by reasoned claim settlement; and (4) keep the insureds informed of the claim resolution process. Gemini’s obligations extend to all the insureds under the Policies and are not limited to the named insured. Thus, Gemini’s obligations extend to additional insureds, like CalAtlantic. To date, CalAtlantic is unaware of Gemini’s investigation, if any, of the claims against CalAtlantic, or its efforts, if any, to seek to settle the claim within the policy limits. Likewise, Gemini has never advised CalAtlantic how, or if, it intends to minimize the magnitude of a possible excess judgment against CalAtlantic. Given the facts outlined above, Gemini has failed or attempted to meet the standard for good faith in this matter. CalAtlantic will be filing suit against Gemini but is also filing this notice in an effort to provide Gemini with a last opportunity to deal with CalAtlantic in good faith as well as to perfect its right to pursue the remedies provided under Section 624.155, Florida Statutes. Gemini can cure by acknowledging its duty to defend CalAtlantic, reimbursing CalAtlantic for its reasonable defense costs, and working together with CalAtlantic to resolve this claim, including without limitation participating at the mediation scheduled for June 10, 2025.
Comments
User Id Date Added Comment
bharrington@vela-ins.com 06-30-2025 Response sent to counsel on 6/30/2025 via email.
lcurtis@traublieberman.com 06-30-2025 Lauren S. Curtis, Esquire, on behalf of Gemini Insurance Company, responded to the Civil Remedy Notice in letter format dated June 30, 2025, via electronic mail and certified U.S. mail to Lauren Kerr, Esquire, of Cogburn Law Firm, P.A.
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.

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DFS-10-363
Rev. 10/14/2008