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Florida Supreme Court rules in first-party breach of insurance contract case that plaintiff could not recover lost rental income that allegedly resulted from insurer’s refusal to timely pay hurricane damage repairs

On January 21, 2021, in Citizens Property Insurance Corporation v. Manor House, LLC, et al., No. SC19-1394, the Florida Supreme Court ruled that extra-contractual consequential damages were not available in a first-party breach of insurance contract action because the contractual amount due to the insured was limited to the amount owed pursuant to the express terms and conditions of the insurance policy. The extra-contractual consequential damages which had been sought by the plaintiff was lost rental income allegedly incurred because of the defendant’s delaying in paying to repair hurricane damage.  The Court additionally held that while extra-contractual damages might otherwise be recoverable in a bad faith action pursuant to Section 624.155, Florida Statutes, they are not recoverable in this case because the defendant, Citizens Property Insurance Corporation, is statutorily immune from first-party bad faith claims pursuant to Section 627.351(6)(a), Florida Statutes.