Aymee Taylor v. State Farm Florida Insurance Company, 5D23-0243 (5th Fla. DCA, Apr. 12, 2024)

The insured suffered water damage caused by a overflowing sink. State Farm covered the loss, and the parties participated in the appraisal process. The appraisal determined additional monies were owed via an appraisal award, which State Farm timely paid. The insured sued State Farm for breach of contract for failure to pay statutory interest that accrued on the appraisal award; the complaint had two-counts, one for a contractual cause of action and the other for a statutory claim. State Farm moved to dismiss, and after the hearing, the trial court dismissed the insured’s complaint based on the limitation of private causes of action under Florida Statute § 627.70131(5).

The Fifth District Court of Appeals overturned the trial court’s dismissal of the insured’s complaint. The court reviewed the policy’s loss payment provision, which included a provision for statutory interest, stating that, if payment is made after 90 days of an initial claim, reopened claim, or supplemental claim and there were no factors outside of State Farm’s control, statutory interest would be paid in accordance with Florida Statute § 627.70131(5) [now known as § 627.70131(7)]. The court noted, while solely under § 627.70131(5) there may be a bar to a private cause of action, State Farm’s addition of language in the provision regarding payment of statutory interest, above and beyond a simple incorporation of § 627.70131(5) into the policy, makes a separate contractual right under the policy to interest paid in compliance with § 627.70131, granting an insured an independent cause of action, which allowed the insured’s complaint to survive State Farm’s motion to dismiss.