Opinion
Case No. 5D02-2611.
Opinion filed January 17, 2003.
Petition for Certiorari Review of Order from the Circuit Court for Citrus County, Patricia Thomas, Judge.
James G. Lindquist of Barr, Murman, Tonelli, Slother Sleet, Tampa, for Petitioner.
Anthony Britt of McKeever, Albert, Barth Britt, Brandon, for Respondents.
Frontier Insurance Company ("Frontier") seeks certiorari review of a circuit court order, which granted respondents' motion to lift a stay entered by a foreign court in a delinquency proceeding involving Frontier as an insolvent insurer. Frontier issued a professional liability insurance policy to American Title Services of Citrus County, Inc. ("American Title"). The Meadows of Citrus County, Inc. ("Meadows") and Meadows Utility Company, Inc. ("Meadows Utility") received title services from American Title and ultimately claimed that such services were negligently provided. Frontier issued a disclaimer of coverage to American Title. American Title, Meadows and Meadows Utility filed a complaint against Frontier in Citrus County for declaratory relief and breach of an insurance contract.
After the Florida action was commenced, the Supreme Court of the State of New York entered an order on October 10, 2001 in a delinquency proceeding finding Frontier to be insolvent and directing the superintendent of insurance of that state to take possession of Frontier's property for purposes of rehabilitation. The order of rehabilitation provided in part:
See § 631.011(6), Fla. Stat. (2002).
All persons are enjoined and restrained from commencing or prosecuting any action, lawsuits or proceedings against Frontier, or the superintendent as rehabilitator.
Frontier filed a notice of stay and suggestion of rehabilitation in the Citrus County Circuit Court on December 19, 2001. The plaintiffs in the Florida action filed a motion to lift the stay of proceedings on April 27, 2002, which motion was granted.
A version of the Uniform Insurers Liquidation Act was enacted in Florida and is referred to as the "Insurers Rehabilitation and Liquidation Act." See §§ 631.001-.399, Fla. Stat. (2002). New York, which has also adopted a version of the Uniform Insurers Liquidation Act, is the "domiciliary state" as defined in the Act because Frontier was incorporated there. See § 631.011(7), Fla. Stat. (2002). Section 631.67, Florida Statutes (2002), part of the "Florida Insurance Guaranty Association Act," provides for an automatic six-month stay of all proceedings in which the insolvent insurer is a party or is obligated to defend a party. The automatic stay commences when the insurer is adjudicated insolvent. The order of rehabilitation entered by the court in New York provided for a six-month stay in all cases where Frontier was obligated to defend a party pursuant to an insurance contract.See, e.g., Mantero-Atienza v. Salvador, 807 So.2d 163 (Fla. 3d DCA 2002). However, the order of rehabilitation also provided for an indefinite stay in all proceedings where Frontier is a defendant in an action. Cf. § 631.041(1)(a), Fla. Stat. (2002).
When the plaintiffs moved to lift the stay, they cited section 631.67, Florida Statutes (2002), and argued that the automatic six-month stay had expired by April 27, 2002, as the order of rehabilitation was entered October 10, 2001. At issue in the instant case, though, is the indefinite stay of all proceedings against Frontier ordered by the court in the domiciliary state.
It is the public policy of Florida to cooperate with reciprocal states in delinquency proceedings involving an insurer. Under principles of comity, the Florida court should have honored the stay entered by the New York court. See American Bonding Co. v. Coastal Metal Sales, Inc., 679 So.2d 1250 (Fla. 2d DCA 1996).
The circuit court in the underlying action departed from the essential requirements of law in lifting the indefinite stay that was ordered in the delinquency proceeding by the court in the domiciliary state. The petition for writ of certiorari is granted, and the circuit court order is quashed.
PETITION GRANTED; ORDER QUASHED.
COBB and PALMER, JJ., concur.