23 Fla. L. Weekly Supp. 614d
Online Reference: FLWSUPP 2306CANIInsurance — Automobile — Coverage — Labor and material rates — Insurer’s motion for partial summary disposition on claims for higher body and paint labor rates and paint and material rate is granted where insurer established that it paid prevailing competitive prices as required by insurance contract, and repair shop failed to produce any opposing evidence
COLLISION CONCEPTS OF DELRAY, LLC. as assignee of Larry Canipe, Plaintiff, vs. STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY, a foreign corporation, Defendant. County Court, 15th Judicial Circuit in and for Palm Beach County. Case No. 502014SC008904XXXXMB. September 29, 2015. Frank Castor, Judge. Counsel: Mariano R. Gonzalez, Gonzalez & Associates, P.A., Miramar, for Plaintiff. Johanna W. Clark, Carlton Fields Jorden Burt, Orlando, for Defendant.
ORDER ON STATE FARM’S MOTION FOR PARTIALSUMMARY DISPOSITION
This matter came before the Court for hearing on August 24, 2015 on Defendant’s Motion for Partial Summary Disposition as to Plaintiff’s claims for payment of higher labor rates and paint and materials rate, and the Court having heard argument of counsel, having reviewed the papers filed by the parties, and being otherwise fully informed in the premises, it is hereby ORDERED:
For the reasons set forth below, State Farm’s Motion for Partial Summary Disposition is GRANTED.
1. Plaintiff filed a one-count breach of contract claim against State Farm seeking, inter alia, payment for a higher body (“sheet metal”) labor rate, paint (“refinish”) labor rate, and paint and materials rate.
2. Plaintiff, Collision Concepts of Delray, LLC, is an automobile repair facility in Palm Beach County, Florida.
3. In June 2014, State Farm insured Larry Canipe’s 2005 Acura when it was involved in an automobile accident.
4. Mr. Canipe chose to have his vehicle repaired at Plaintiff’s repair facility.
5. State Farm provided coverage and made payment for repairs to the subject vehicle pursuant to an estimate written by State Farm.
6. In August 2014, Plaintiff filed the breach of contract claim against State Farm for alleged underpayment of the repairs. Plaintiff seeks additional payment pursuant to a purported assignment of benefits executed by State Farm’s insured, Mr. Canipe.
7. Plaintiff claims that State Farm breached its insurance policy because it paid $2 below the amount that Plaintiff billed State Farm per hour for body labor and paint labor, and $1 below the amount Plaintiff billed for the paint and materials rate.
8. State Farm’s estimates reflect that State Farm’s payments were based on the following rates:
· Body labor at $44.00 per hour;
· Paint labor at $44.00 per hour; and
· Paint and Materials at $25.00 per hour.
9. The amount State Farm paid for the repairs at issue was subject to a limit of liability provision in the governing insurance contract.
10. The policy clearly and unambiguously states that State Farm’s limit of liability for the subject dispute is the prevailing competitive price, which means prices charged by a majority of the repair market in the area where the covered vehicle is to be repaired as determined by a survey made by State Farm.
11. State Farm moved for summary disposition on the basis that it had complied with the insurance policy by paying the prevailing competitive price as determined by a survey made by State Farm.
12. In support of its motion, State Farm relied upon the affidavit of Estimatics Team Manager Scott Walker and Mr. Walker’s deposition testimony.
13. Mr. Walker testified that because the vehicle was repaired in Palm Beach County, the applicable repair market as determined by State Farm’s survey was Palm Beach County, Florida.
14. Mr. Walker further testified that the prevailing competitive prices in Palm Beach County, Florida, as determined by State Farm’s survey in June 2014, were $44 for both body labor and paint labor and $25 for paint and materials rate.
15. Mr. Walker explained that these three rate categories were calculated and paid pursuant to State Farm’s survey that established the prevailing competitive prices charged by a majority of the repair market in Palm Beach County, Florida on the date State Farm prepared its first written estimate.
16. Accordingly, State Farm established that it paid the prevailing competitive prices as determined by its survey as required by the governing insurance contract.
17. Plaintiff failed to produce any counter evidence that State Farm did not pay the prevailing competitive prices as determined by State Farm’s survey.
