23 Fla. L. Weekly Supp. 945a
Online Reference: FLWSUPP 2309FORSInsurance — Personal injury protection — Attorney’s fees — Claim or defense not supported by material facts or applicable law — Sanctions against insurer are appropriate where insurer knew or should have known that affirmative defense of standing was not supported by material facts when it initially presented defense or, at latest, when it received medical provider’s motion for sanctions and safe harbor letter, yet insurer continued to litigate defense until it waived it
FLORIDA HOSPITAL MEDICAL CENTER, as assignee of Madge Forsythe, Plaintiff, v. STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY, Defendant. County Court, 7th Judicial Circuit in and for Volusia County. Case No. 2015 20065 CONS (78). August 19, 2015. Shirley A. Green, Judge. Counsel: David B. Alexander, Bradford Cederberg, Orlando, for Plaintiff. Justin Seekamp, for Defendant.
ORDER ON PLAINTIFF’S MOTIONS FOR SANCTIONSON STANDING PURSUANT TO FLA. STAT. §57.105
THIS CAUSE having come before the Court on Plaintiff’s Motion for Sanctions on Standing Pursuant to Fla. Stat. 57.105 and the Court having heard arguments of counsel on July 28, 2015, and being otherwise advised in the Premises, it is hereby:
ORDERED AND ADJUDGED that:
1. On March 18, 2015, Defendant filed its Answer and Affirmative Defenses, setting forth the following alleged affirmative defense:
FIRST AFFIRMATIVE DEFENSE
Defective Assignment of Benefits
There is no valid assignment of benefits and, therefore, the Plaintiff has no standing to bring or maintain the above-styled lawsuit.
2. The Assignment of Benefits at issue in favor of Plaintiff, Florida Hospital Medical Center, reads in pertinent part:
“I hereby irrevocably assign and transfer to the Hospital, Physicians, Care Providers, and/or their respective assignees, all right title and interest in all benefits, liens, damages, indemnity, reinsurance or other monies payable for Services rendered, including but not limited to: Income Security Act (“ERISA”) benefits or coverage; PIP: uninsured/underinsured motorist; auto or homeowner insurance; and in all causes of action against any party or entity that may be responsible for payment of benefits or monies regardless of whether or not I ultimately settle my claim with a non-admission of liability provision. . .
I hereby appoint the hospital as my Attorney-In-Fact under circumstances permitted by law (and to the extent not prohibited by an applicable provider contract) to on my behalf execute all documents and take all actions deemed necessary by the Hospital to receive its payment . . . of such Program proceeds, Insurance Plan proceeds and/or all other benefits.”
3. On June 2, 2015, Plaintiff served Defendant with Plaintiff’s Motion for Sanctions on Standing Pursuant to Fla. Stat. §57.105 and twenty-one (21) day safe-harbor letter and requested that Defendant withdraw its Affirmative Defense of Standing within twenty-one (21) days from the date of said safe-harbor letter.
4. Defendant failed to withdraw its Affirmative Defense of Standing within the safe-harbor period and on June 24, 2015 Plaintiff filed its Motion for Sanctions with the Court. Therefore, Plaintiff’s Motion for Sanctions on Standing Pursuant to Fla. Stat. §57.105 is properly before the Court for consideration.
5. On July 23, 2015, Defendant filed its Notice of Filing Defendant’s Stipulation of Facts which states in paragraph four (4.) that “State Farm waives the remaining affirmative defenses in its last Answer and Affirmative Defenses.” Via this statement, Defendant waived its Standing defense in this matter.
6. On July 27, 2015, Defendant filed its “Amended Defendant’s Notice of Voluntary Withdrawal With Prejudice of Affirmative Defenses” which “expressly states that any and all affirmative defenses are withdrawn with prejudice.”
7. In the present matter, the Court finds, pursuant to Fla. Stat. §57.105(1)(a), that when the defenses of Standing was initially presented to this Court via Defendant’s filing of its Answer and Affirmative Defenses, Defendant knew or should have known that said defense was not supported by the material facts necessary to establish the defenses. Even if this was not the case, once Defendant received Plaintiff’s Motion for Sanctions and safe-harbor letter, Defendant knew or should have known that said defense was not supported by the material facts necessary to establish the defenses, yet Defendant continued to litigate said Standing until it was waived on July 23, 2015. Sanctions against Defendant, STATE FARM, and in favor of FLORIDA HOSPITAL MEDICAL CENTER, as assignee of MADGE FORSYTHE, based upon Defendant’s violation of Fla. Stat. §57.105(1)(a) are appropriate in this matter.
10. Plaintiff’s Motion for Sanctions on Standing pursuant to Fla. Stat. §57.105 are hereby GRANTED. The Court finds that Plaintiff, FLORIDA HOSPITAL MEDICAL CENTER, as assignee of MADGE FORSYTHE, is entitled to its reasonable attorneys’ fees, as sanctions, against Defendant, STATE FARM, pursuant to Fla. Stat. §57.105(1)(a) and Fla. Stat. §57.105(2). The Court hereby reserves ruling as to the amount of the sanctions. Said sanctions shall be paid by Defendant, STATE FARM.
11. If Plaintiff prevails on its Motion for Final Judgment, Plaintiff will not recover attorney’s fees beyond the amount in would otherwise receive as the prevailing party.
12. If the Plaintiff does not prevail, Plaintiff would still be entitled to the attorney fees and other costs associated with the Motion for Sanctions.
13. Fla. Stat. §57.105 allows the court to require that both Defendant and Defendant’s c counsel share the sanction cost; however in the instant case, the court orders the Defendant, State Farm to pay the entire amount.
