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SANDRA MALU, Plaintiff, v. SECURITY NATIONAL INSURANCE CO., Defendant.

9 Fla. L. Weekly Supp. 111b

Insurance — Personal injury protection — Medical benefits — Transportation costs — Class action alleging that payment for transportation costs at rate of 34.5 cents per mile violated Florida’s PIP statute and breached contract, and seeking declaratory relief determining that section 627.736 does not permit insurer to pay for automobile usage mileage at its set rate — Reimbursement of 34.5 cents per mile for the cost of transportation associated with medical treatment under section 627.736(1)(a) is reasonable as a matter of law — Court does not have primary jurisdiction as matter is better determined by Department of Insurance — Claim is inappropriate for class action treatment where adjudication would require court to consider individual facts surrounding PIP claims of thousands of policyholders, as well as insurer’s defenses to each of those claims — Complaint dismissed with prejudice

District Court affirmed at 28 Fla. L. Weekly D1239a. HOWEVER,
District court opinion was QUASHED at 30 Fla. L. Weekly S145a and 30 Fla. L. Weekly S172d

SANDRA MALU, Plaintiff, v. SECURITY NATIONAL INSURANCE CO., Defendant. Circuit Court, 17th Judicial Circuit in and for Broward County. Case No. 01-11925 (09). January 7, 2002. Robert Lance Andrews, Judge.

ORDER

THIS CAUSE having come before the Court upon the Defendant’s Motion to Dismiss Plaintiff’s Class Representation Complaint, and the Court having considered same, having heard argument of counsel, and being otherwise duly advised in premises, finds and decides as follows:

Plaintiff has filed a Class Representation Complaint in which she alleges that as a result of an automobile accident, she sustained injuries that required medical attention. The Plaintiff used a private passenger automobile to attend her medical appointments and, as a result, incurred transportation costs. The Plaintiff submitted a claim for personal injury protection (“PIP”) benefits to her insurer, Security National, who reimbursed her transportation costs at a rate of 34.5 cents per mile. In the Complaint, Plaintiff alleges that Security National violated Florida’s PIP statute, §627.736(1)(a) Florida Statutes, and breached its contract by reimbursing her at that rate. The Plaintiff also seeks Declaratory Relief, requesting this Court to determine that §627.736 Florida Statutes does not permit Security National to pay for automobile usage mileage at its set rate of 34.5 cents per mile. Plaintiff claims that Security National should have paid her at a higher rate that is not less than 50 cents per mile. Security National has now moved to dismiss Plaintiff’s Class Representation Complaint.

Pursuant to §627.736(1)(a) Florida Statutes, every insurance policy complying with the security requirements of §627.733 Florida Statutes shall provide medical benefits of “[e]ighty percent of all reasonable expenses for necessary medical, surgical, X-ray, dental, and rehabilitative services . . .” The Fifth District Court of Appeals in Hunter v. Allstate Insurance Company, 498 So.2d 514, 516 (Fla. 5th DCA 1986), held that “[t]he cost of transportation for medical treatment constituted a “reasonable expense for necessary medical services,” thus properly awarded under section 627.736(1)(a).” In reaching this holding, the court looked to the analogous provisions of the workers compensation law, §440.13(5) Florida Statutes which provides:

(5) An injured employee is entitled, as a part of his remedial treatment, care, and attendance, to reasonable actual cost of transportation to and from the doctor’s office, hospital, or other place of treatment by the most economical means of transportation available and suitable in the individual case. When the employee is entitled to such reimbursement for transportation by private automobile, it shall be presumed, in the absence of proof, that the actual costs is the amount allowed by the state to employees for official travel.

(Emphasis added).

This Court takes judicial notice that the State of Florida reimburses state employees for business travel at the rate of 29 cents per mile, as does the Florida Worker’s Compensation Statute. Therefore, this Court expressly finds that Security National Insurance Company’s reimbursement of 34.5 cents per mile for the costs of transportation associated with medical treatment under §627.736(1)(a) is reasonable as a matter of law.

This Court further holds that it does not have “primary jurisdiction” as this matter is better determined by an administrative agency, specifically the Department of Insurance.

This Court further finds that the Plaintiff’s claim is inappropriate for class action treatment. The adjudication of this matter as a class action would require this Court to consider the individual facts surrounding PIP claims of thousands of Security National policyholders, as well as the defenses of the insurer to each of those claims. As such, Plaintiff has not satisfied the prerequisites of Rule 1.220 Florida Rules of Civil Procedure.

Accordingly, it is hereby

ORDERED AND ADJUDGED that the Defendant’s Motion to Dismiss the Plaintiff’s Class Representation Complaint is GRANTED. The Plaintiff’s Class Representation Complaint is hereby DISMISSED WITH PREJUDICE.

This Court reserves jurisdiction to determine entitlement to attorney’s fees pursuant to §57.105 Florida Statutes.

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