5D02-2611 Frontier Ins. v. Amercian Title

State: Florida

Court: Florida Fifth District Court

Docket No: 5D02-2611

Case Date: 01/13/2003

Preview:IN THE DISTRICT COURT OF APPEAL OF THE STATE OF FLORIDA FIFTH DISTRICT JANUARY TERM 2003

FRONTIER INSURANCE COMPANY, Petitioner, v. AMERICAN TITLE SERVICES, ETC., ET AL., Respondents. _________________________________/ 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. CASE NO. 5D02-2611

SAWAYA, J. Frontier Insurance Company ("Frontier") seeks certiorari review of a circuit court order that granted respondents' motion to lift a stay entered by a foreign court in a delinquency proceeding involving Frontier as an insolvent insurer. We grant the petition and quash the order under review. Frontier issued a professional liability insurance policy to American Title Services of Citrus County, Inc. ("American Title"). American Title sought coverage under this policy after being sued for performing allegedly negligent title services for Meadows of Citrus County, Inc.

("Meadows") and Meadows Utility Company, Inc. ("Meadows Utility"). Frontier refused to honor American Title's claim and issued a disclaimer of coverage to American Title. American Title, Meadows, and Meadows Utility filed a complaint against Frontier in Citrus County, Florida, 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 1 involving Frontier, 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.2 The order of rehabilitation provided in part: All persons are enjoined and restrained from commencing or prosecuting any action, lawsuits or proceedings against Frontier, or the superintendent as rehabilitator. The order further provided for a six-month stay in all cases in which Frontier was obligated to defend a party pursuant to an insurance contract and for an indefinite stay in all proceedings in which Frontier was a defendant in an action. Cf.

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