16 Fla. L. Weekly Supp. 223b

Online Reference: FLWSUPP 163PERAL

Insurance — Personal injury protection — Coverage — Medical expenses — Exhaustion of policy limits — There is no requirement for insurer to reserve benefits for payment of disputed claims — Absent showing of bad faith, insurer is not liable for benefits, including interest, once benefits have been exhausted

DEERBROOK INSURANCE COMPANY, Appellant, vs. PAUL A. ANDREWS, DDS., LMT, a/a/o Rosa Peralta, Appellee. Circuit Court, 18th Judicial Circuit (Appellate) in and for Seminole County. Consolidated. Case No. 06-67AP. L.C. Case No. 02-SC-3598. ALLSTATE INSURANCE COMPANY, Appellant, vs. PAUL A. ANDREWS, DDS., LMT, a/a/o Javier Villalobos, Appellee. Case No. 06-83AP. L.C. Case No. 02-SC-4445. ALLSTATE INSURANCE COMPANY, Appellant, vs. PAUL A. ANDREWS, DDS., LMT, a/a/o Angela Petty, Jr., Appellee. Case No. 07-11AP. L.C. Case No. 02-SC-3599. ALLSTATE INSURANCE COMPANY, Appellant, vs. PAUL A. ANDREWS, DDS., LMT, a/a/o Stephanie Sabino, Appellee. Case No. 07-12AP. L.C. Case No. 02-SC-3749. ALLSTATE INSURANCE COMPANY, Appellant, vs. PAUL A. ANDREWS, DDS., LMT, a/a/o Tiffani Hersey, Appellee. Case No. 07-13AP. L.C. Case No. 02-SC-4374. ALLSTATE INSURANCE COMPANY, Appellant, vs. PAUL A. ANDREWS, DDS., LMT, a/a/o Kimberly Frye, Appellee. Case No. 07-14AP. L.C. Case No. 02-SC-4375. ALLSTATE INSURANCE COMPANY, Appellant, vs. PAUL A. ANDREWS, DDS., LMT, a/a/o Caryn Schultz, Appellee. Case No. 07-15AP. L.C. Case No. 02-SC-4379. ALLSTATE INSURANCE COMPANY, Appellant, vs. PAUL A. ANDREWS, DDS., LMT, a/a/o Olga Kohrt, Appellee. Case No. 07-16AP. L.C. Case No. 02-SC-4380. ALLSTATE INSURANCE COMPANY, Appellant, vs. PAUL A. ANDREWS, DDS., LMT, a/a/o Paola Reed, Appellee. Case No. 07-17AP. L.C. Case No. 02-SC-4382. ALLSTATE INSURANCE COMPANY, Appellant, vs. PAUL A. ANDREWS, DDS., LMT, a/a/o William Nielsen, Appellee. Case No. 07-18AP. L.C. Case No. 02-SC-4384. ALLSTATE INSURANCE COMPANY, Appellant, vs. PAUL A. ANDREWS, DDS., LMT, a/a/o Dorothy Graham, Appellee. Case No. 07-19AP. L.C. Case No. 03-SC-532. ALLSTATE INSURANCE COMPANY, Appellant, vs. PAUL A. ANDREWS, DDS., LMT, a/a/o Claudette Perpillant, Appellee. Case No. 07-20AP. L.C. Case No. 03-SC-533. December 12, 2008. Appeal from County Court for Seminole County, Honorable John R. Sloop, County Court Judge. Counsel: Jacqueline G. Emanuel, Ft. Lauderdale; and G. Douglas Nail, Orlando, for Appellant. Michael B. Brehne, Maitland; and John G. Crabtree, Key Biscayne, for Appellee.

(Dickey, J.) These cases were consolidated on appeal as they all involve the same issue. Appellants appeal the trial court’s granting of Appellee’s motions for summary judgment and entry of final judgment in favor of Appellee in each of the cases. The trial court issued separate orders in each of the cases setting forth the undisputed facts as to each case, but the conclusion of law and ruling in each case was identical. The undisputed facts in all of the cases are that:

1. The insured individuals were in car accidents and sustained personal injuries requiring treatment by Andrews.

2. At the time of the accident the PIP policies provided $10,000 in benefits (some of the policies had $2,000 deductibles).

3. Allstate and Deerbrook reduced the amounts paid to Andrews on the belief that he contracted with Beech Street Corporation.

4. Prior to the filing of suit in all of the cases, the PIP benefits had been exhausted.

The trial court granted summary judgment in favor of Appellee, holding that Allstate and Deerbrook were not liable for policy benefits in excess of the policy limits, but were liable for interest on the outstanding amounts and attorney’s fees and costs.

The Fifth District Court of Appeal recently issued an opinion that addresses the issues raised in these appeals. Progressive American Ins. Co. v. Stand-Up MRI of Orlando, ___ So. 2d ___, 2008 WL 2695876 (Fla. 5th DCA July 11, 2008) [33 Fla. L. Weekly D1746a]. The Court held that there is no requirement for the insurance company to set aside a reserve for disputed claims and that absent a showing of bad faith, the insurer is not liable for benefits, including interest, once benefits have been exhausted.

Accordingly, the orders granting summary judgment and the final judgments in favor of Appellee are REVERSED and these matters are REMANDED to the trial court for further proceedings consistent with the Fifth District Court of Appeal’s holding in Progressive American Ins. Co. v. Stand-Up MRI of Orlando, ___So. 2d___, 2008 WL 2695876 (Fla. 5th DCA July 11, 2008) [33 Fla. L. Weekly D1746a].