Under Florida Law, a "Sudden" Event Can Occur Over Time

Originally published by Larry Bache .

If you are a frequent reader of this blog, you are likely familiar with the general rule that policy language determined to be ambiguous is read in favor of the insured because the insured is the nondrafting party. A contract is ambiguous when its language is reasonably susceptible to more than one interpretation, or is subject to conflicting interests.

There are two types of ambiguities — patent and latent.

Patent ambiguities are on the face of the document or policy, while latent ambiguities do not become clear until extrinsic evidence is introduced and requires parties to interpret the language in two or more possible ways.

Recently, the Second District Court of Appeal overturned a summary judgment in favor of the insurer, Castle Key Indemnity Company, holding that the term “sudden,” as used in the policy, was a latent ambiguity.

In Price v. Castle Key Indemnity Company,1 water flowed from a pipe going to Mr. Price’s upstairs toilet for approximately thirty days…

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