final until disposition of timely filed motion for rehearing.
Appeal from the Circuit Court for Miami-Dade County Lower
Tribunal No. 14-22334, Mavel Ruiz, Judge.
Law Center, LLC, and Alan K. Marcus and Nicholas M. Vicente;
Xander Law Group, P.A., and Wayne R. Atkins and Matthew J.
Troccoli, for appellant.
Kubicki Draper, and Valerie A. Dondero, for appellee
Progressive Select Insurance Company.
LOGUE, SCALES and GORDO, JJ.
Ferrari sports car sustained extensive damage in an accident,
the car's owners submitted a claim to Progressive Select
Insurance Company ("Progressive"), the appellee and
defendant below. Progressive issued a settlement check to its
insured, but Progressive did not include the car's
lienholder, World Finance Group, LLC, the appellant and
plaintiff below ("World Finance"), as a co-payee on
the check or otherwise protect World Finance's interests.
After the Ferrari's owners did not use the insurance
proceeds to repair the car, World Finance sued Progressive,
alleging that Progressive breached its duty to World Finance
under the insurance policy. Because we conclude that the
policy expressly required Progressive to protect the interest
of the lienholder, we reverse the trial court's final
summary judgment in favor of Progressive and remand for entry
of judgment in favor of World Finance.
arranged for financing by World Finance, in 2014, JG Auto,
LLC purchased a 2011 Ferrari 458 Italia from a Miami,
Florida dealer. Allegedly without the knowledge of World
Finance, JG Auto transferred ownership to Joan and Yenly
Calvo. The Calvos obtained an automobile insurance policy on
the Ferrari from Progressive. The declarations page of the
policy named World Finance as the vehicle's lienholder.
In March 2014, the Ferrari sustained extensive damage in an
accident, although this damage amounted to something less
than a total loss. Progressive issued a settlement check to
the Calvos in the amount of $149, 000. The Calvos did not use
the insurance proceeds to repair the Ferrari or to pay off
the car loan, apparently keeping these funds for themselves.
The settlement check did not name either World Finance or a
repair shop as co-payee. The Loss Payable Clause of the
subject insurance policy provides as follows:
Payment under this Part IV for a loss to a covered auto will
be made according to your interest and the interest of any
lienholder shown on the declarations page or designated by
you. At our option, payment may be made both jointly, or to
either separately. Either way, we will protect the interest
of both. However, if the covered auto is not a total loss, we
may make payment to you and the repairer of the auto.
(Emphases in original removed.)
rejected World Finance's demands for payment, asserting
that Progressive had satisfied its obligations under the
policy by making payment directly to its insureds, the
Calvos. Claiming intended third-party beneficiary status
under Progressive's policy with the Calvos,
World Finance sued Progressive for breach of contract and
breach of the implied covenant of good faith and fair
dealing. Both parties agreed that the dispositive
issue was one of contract interpretation, and therefore, they
filed cross motions for summary judgment. On June 12, 2018,
the trial court heard both motions.
granting summary judgment for Progressive (and denying World
Finance's summary judgment motion), the trial court read
the first sentence of the Loss Payable Clause, above, to mean
that only when the "covered auto" is a total loss
and not capable of repair is Progressive required to protect
the lienholder's interest in payment of the settlement
Finance appeals both the trial court's August 3, 2018
final summary judgment for Progressive and the trial
court's denial of its summary judgment motion.