Insurers May Not Be Required to Defend Contractors In a Florida §558 Proceeding

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Based on this ruling, an insurer is not necessarily required to defend a Florida contractor that received a Chapter 558 notice.

November 6, 2018
Erik Simpson - Gordon & Rees Construction Law Blog

In recent holding, the Florida Supreme Court held that an insurer may not have a duty to defend a contractor in a Florida §558 proceeding.

Chapter 558 of the Florida Statutes sets forth procedural requirements which must be met before a claimant may file a construction defect action. These requirements include serving a contractor, subcontractor or supplier with written notice of the claim. The contractor, in turn, must serve a written response to the notice of claim in which the contractor provides either an offer to repair the alleged construction defect at no cost to the claimant, resolution of the claim through a monetary payment, a statement disputing the claim, or a statement that any monetary payment will be determined by the recipient’s insurer. The claimant may file suit if the contractor disputes the claim and refuses to remedy the alleged defect or provide monetary compensation.

Mr. Simpson may be contacted at esimpson@grsm.com



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