Plus, the $5.6 million elevator verdict
A Florida appeals court finds a jury’s award for plumbing damages out of line with the evidence, another appeals court finds that a Pre-Suit Notice is required for every case, and a newspaper carrier is awarded $5.6 million after being trapped in an elevator for hours. It’s all in this week’s Legal Briefs.
Plumbing Award Out of Line: Karmo vs. Universal Property & Casualty Insurance started way back in 2019, when water and sewage backed up into the Karmo’s home through multiple fixtures, causing water damage and raising the question of faulty cast-iron pipes. After being dissatisfied with the initial $7,000 provided by Universal, the Karmos filed suit, and last year were awarded a jaw-dropping $335,000 in replacement cost value (RCV) and $305,000 in actual cash value (ACV) damages, even though contractor estimates during the proceedings sat at $79,680 RCV or $50,220 ACV. After being denied a new trial and a remittitur, Universal appealed the decision. The First District Court of Appeal in May agreed that the jury’s award was out of line and “does not bear a reasonable relation to the damages proved.” 1st DCA Judge Stephanie Ray wrote in the court’s opinion that “because the amounts awarded cannot be logically derived from the evidence, the verdict is not supported by it. The trial court therefore abused its discretion in denying post-trial relief as to damages.” The case was sent back to the Circuit Court judge in Okaloosa to determine the proper damages due.
Pre-Suit Notice Requirement: While insureds are free to refile identical lawsuits after voluntary dismissals, Florida’s Fourth District Court of Appeal found that a separate pre-suit notice is required for each instance in the recent Moreno vs. People’s Trust Insurance Company. The court held that the voluntary dismissal “serves to terminate the litigation,” which upon refiling, demands a new Notice of Intent to Litigate, with a “suit-specific” reading of the situation instead of a “claim-specific” one. The opinion reads in part, “The statute is not a simple notice-of-claim statute; it is a presuit settlement demand statute. It requires the presuit notice to include a settlement demand that itemizes damages, attorneys fees, and costs.” Because the insured had included attorney fees incurred during the first suit’s filing in the new litigation, the second filing of the claimed “identical” suit was materially different than the initial suit. As such, both the trial court and the 4th DCA dismissed the case.
Trapped in the Elevator: Valeria Mardy, a newspaper carrier in Pompano Beach, has won a $5.6 million lawsuit after being trapped for hours in a malfunctioning condo elevator. After signing in at the front desk visitor log in the early hours of March 22, 2023, the 62-year-old left her large work bag on the bench near security, walked onto an elevator to make a delivery, and got stuck between the 7th and 8th floors. With the doors not opening, the phone and camera on the fritz, and no one near enough to hear the alarm bell, Mardy waited for 3 hours in the elevator before help arrived, and suffered a stroke that left her with permanent physical limitations. Mardy’s lawyers contended that not only did the security company, Marksman Security not patrol the grounds sufficiently, or notice the large bag for over three hours, but that the company knew the elevator was malfunctioning. The Broward County jury assigned to the case awarded the settlement, holding the security company responsible for 60%, the condo and elevator company for 10% each, and the property manager for the remaining 20% of the award.
LMA Newsletter of 8-3-26
