Insureds Recover Attorney Fees and Costs Despite Jury Finding of Misrepresentations or False Statements

Originally published by Shane Smith.

A recent Florida case involved insureds whose home was insured by Citizens. On May 25, 2012, the home was damaged by water escaping from a broken plumbing system.1 Citizens’ adjuster inspected the home and noticed that the driveway and interior flooring had been trenched and the underground plumbing system had been removed by a plumbing company. Citizens took a recorded statement from the insureds, and paid them approximately $28,000.
Although the insureds testified under oath they had no plumbing problems prior to May 25, 2012, and did not know the plumbing company until the alleged date of loss, Citizens alleged that the plumbing company had been to the insureds’ home prior to May 25. Citizens further alleged that the insureds had met with the plumbing company the day before the reported date of loss to discuss a staged loss.

Four months later, the insureds sued Citizens for breach of contract, alleging that the total amount of the loss was more than $330,000 and that…

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