Spartan Services Corp. v. Citizens Property Insurance Corporation

Summary

The Third District Court of Appeal of Florida held that an assignment of benefits agreement covering post-loss water mitigation services was not invalid under section 627.7152(7) merely because it stated that the insured remained responsible for depreciation. The court reversed the dismissal of Spartan Services Corp.’s breach-of-contract action against Citizens Property Insurance Corporation and remanded for further proceedings, concluding that Spartan had standing based on the valid assignment.

Holdings

1. Section 627.7152(7)(b) does not prohibit an assignment of benefits agreement from stating that the insured remains responsible for depreciation, and the inclusion of that term neither violates the statute nor invalidates the assignment.
2. Because the assignment of benefits agreement was valid, Spartan had standing to sue Citizens on the insureds' claim.

Questions Presented

1. Whether an assignment of benefits agreement is invalid under section 627.7152(7), Florida Statutes, because it states that the insured remains responsible for depreciation.
2. Whether Spartan had standing to sue Citizens based on the assignment of benefits agreement.

Disposition

reversed_and_remanded