MICHAEL P. AHERN, JR., as Personal Representative of the Estate of JERRI RENEE AHERN, Deceased, and next friend and guardian of MICHAEL P. AHERN, IV, a minor, Appellant, v. ODYSSEY RE (LONDON) LIMITED, f/k/a SPHERE DRAKE INSURANCE COMPANY, Appellee/Cross-Appellant, v. SCOTT COMBS, Cross-Appellee.
26 Fla. L. Weekly D1555a
788 So. 2d 369
Insurance — Liability — Duty to defend — Coverage — Declaratory judgments — Torts — Wrongful death — Claims of negligent hiring and retention against medical transportation company by injured passenger/client and estate of deceased passenger who was not insured’s client — Action for declaratory relief to enforce Coblentz settlement agreements providing for entry of consent judgments against insured and an assignment of insured’s rights against its insurer to plaintiffs — Trial court erred in finding that estate of passenger who was not client of medical transportation company could not enforce settlement agreement against company’s insurer where trial court found that insurance provided coverage for negligent hiring and retention, trial court’s finding was not challenged on appeal, and estate’s complaint succinctly and sufficiently stated a cause of action against insured for negligent hiring and retention — When insurer refused to provide defense to its insured, and as result insured entered into settlement agreement with estate, insurer lost its chance to litigate factual issues surrounding duty, breach, and proximate cause which were pivotal to ultimate resolution of the legal principles involved in estate’s claims — Because settlement of negligent hiring claim served to establish insured’s liability to estate, trial court erred in finding that there was no coverage for estate’s claims — Error to render final judgment on consent judgments without hearing on reasonableness issue where parties specifically agreed to bifurcate the proceedings and to reserve the issue of reasonableness of amount of consent judgments for another day — Remand for evidentiary hearing on whether consent judgments are reasonable in amount and, thus, enforceable