Kelley Kronenberg Practice Partner Zachary Schiffman and Partner/Business Unit Leader Jake Huxtable secured a nominal settlement for TypTap Insurance Company in a Hurricane Ian property damage case, eliminating approximately $230,000.00 in exposure plus potential attorney’s fees and costs on the eve of trial in Miami-Dade County Circuit Court. 

The case arose when insureds filed a homeowners insurance claim for alleged Hurricane Ian damage at their Miami property. Based on their public adjuster’s estimate, the insureds sought coverage from their property insurance carrier. The insurer investigated the claim and ultimately denied coverage, leading the insureds to file a breach of contract lawsuit. 

With trial rapidly approaching, the insurer transferred the case to Kelley Kronenberg from another defense firm. Taking over complex litigation close to trial presents unique challenges, but the team immediately implemented a dynamic and aggressive strategic approach. 

Zach and Jake retained a prominent forensic meteorologist and a professional engineer to challenge the causation and scope of the alleged Hurricane Ian damage. This expert testimony would be crucial in demonstrating that the claimed damages were not related to the hurricane or were grossly overstated by the public adjuster’s estimate. 

Most decisively, the team identified and capitalized on the insureds’ failure to participate in discovery. Rather than allowing these discovery violations to go unenforced, we prepared and filed numerous motions for sanctions (including to strike the pleadings), to compel compliance and demonstrate to the insureds the serious consequences of their refusal to cooperate. 

The aggressive motion practice included filing a motion to show cause for violation of an agreed order, a motion to compel verified answers to interrogatories, a motion to strike the pleadings, and additional motions to compel discovery responses. This multipronged approach demonstrated to opposing counsel and the insureds that the defense team was prepared to vigorously enforce all discovery obligations and would seek the most severe sanctions available. 

Simultaneously, our team engaged in thorough trial preparation, signaling to the opposing side that they were fully prepared to try the case if necessary. The combination of aggressive motion practice targeting the insureds’ discovery failures and visible trial preparation created significant litigation pressure. 

Faced with potential sanctions, including possible striking of their pleadings, and recognizing the defense team’s readiness for trial with credible expert witnesses, the insureds accepted a nominal proposal for settlement shortly before trial. This resulted in the insurer avoiding the full claimed exposure plus the substantial attorney’s fees and costs that would have been awarded if the insureds had prevailed at trial. 

This victory demonstrates the effectiveness of aggressive discovery enforcement when opposing parties fail to meet their obligations and showcases the firm’s ability to take over difficult cases late in litigation and achieve favorable results through strategic motion practice and trial preparation. For property insurance carriers, this case reinforces that discovery violations should not be tolerated, and that vigorous enforcement can create leverage leading to favorable settlements even in cases with substantial claimed damages. 

Learn more about the firm’s First-Party Property and Coverage Division; click here: https://kelleykronenberg.com/our-practices/first-party-insurance-defense-coverage-bad-faith/  

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