On February 15, 2017, in
Gonzalez v. Homewise Preferred Insurance Company, No. 2D15-425, the Florida Second DCA reversed a trial court’s dismissal
of a first party insured’s breach of contract action their insurer.
The trial court had dismissed the action on statute of limitations grounds,
holding that when the defendant insurer became insolvent during the lawsuit,
the insured was required to institute a new lawsuit against FIGA, the
Association that administers the Florida Insurance Guaranty Act. The plaintiff
had failed to do so within the statute of limitations period applicable
to claims against FIGA, i.e., within one year of the deadline for filing
claims with the receiver of the insolvent insurer. The Second DCA ruled
that when an insurer is declared insolvent during the pendency of a lawsuit,
there is no requirement to file a new lawsuit, or even to move to substitute
FIGA, because FIGA automatically steps into the shoes of the insolvent
insurer. The Second DCA noted that its holding was consistent with an
identical holding by the Third DCA in
Florida Insurance Guaranty Ass’n v. Mendoza, 193 So. 3d 940 (Fla. 3d DCA 2016).
