SAFEWAY PREMIUM V. SOSA

SUPREME COURT CASES

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State: Florida

Court: Florida Third District Court

Docket No: 06-2579

Case Date: 04/08/2009

Preview:Third District Court of Appeal
State of Florida, January Term, A.D. 2009
Opinion filed April 8, 2009. Not final until disposition of timely filed motion for rehearing. ________________ No. 3D06-2579 Lower Tribunal No. 03-28811 ________________

Safeway Premium Finance Company, a Florida corporation,
Appellant, vs.

Lazaro E. Sosa, in his own right and on behalf of all persons similarly situated,
Appellees.

An Appeal from a non-final order in the Circuit Court for Miami-Dade County, Mary Barzee Flores, Judge. Colodny, Fass, Talenfeld, Karlinsky & Abate, and Maria Elena Abate, and Krista S. Kovalcin (Fort Lauderdale), for appellant. Equels Law Firm and Thomas K. Equels; Alvarez Almazan and Rodriguez and Benjamin R. Alvarez, for appellees. Before GERSTEN, C.J., and SHEPHERD and SUAREZ, JJ. SUAREZ, J. Safeway Premium Finance Company appeals the trial court's order certifying a class action. Lazaro E. Sosa's Motion for Certification alleges that

Safeway violated section 627.840(b), Florida Statutes (2002), by overcharging Sosa and other Safeway customers. We find that Sosa failed to allege sufficiently a knowing violation of the statute, and therefore his claim is not an appropriate claim for a class action. We reverse the granting of the Motion for Certification. On November 26, 2002, Sosa entered into a six-month premium finance agreement with Safeway for which he was charged an additional service charge of twenty dollars, provided for in section 627.840(b), Florida Statutes (2002). Sosa renewed his six-month automobile policy two more times, and, each time, obtained a new, six-month premium finance contract with Safeway wherein with each new contract he was charged the additional service charge of twenty dollars. He claims that section 627.840(b) does not allow for more than one twenty-dollar additional charge in a twelve-month period and that the two additional service charges constituted a violation by Safeway of section 627.840(b). He alleges that Safeway has made the same unauthorized charges to other customers. Safeway admits the overcharge, but states that the violation was an error and denies any knowing violation. Section 627.840(b), Florida Statutes (2002) allows a premium finance company to charge a twenty-dollar additional charge once every twelve months. The twenty-dollar additional charge may be charged more than once every twelve

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months only if the customer's policy was cancelled due to nonpayment within the preceding twelve-month period. Section 627.840(b) states: The service charge shall be a maximum of $12 per $100 per year plus an additional charge not exceeding $20, which additional charge need not be refunded upon prepayment. Such additional charge may be charged only once in a 12-month period for any one customer unless the customer's policy has been canceled due to nonpayment within the immediately preceding 12-month period.

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