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A brief and to-the-point appellate determination is worth it studying concerning precise money worth in Florida.1 The “as determined by us” trailing language within the coverage’s definition was the insurance coverage firm’s undoing:
Tower Hill’s accountability beneath the coverage was to pay the ‘actual cash value’ of the loss. Ordinarily, ‘actual cash value’ is outlined because the ‘replacement cost minus depreciation.’ Trinidad v. Fla. Peninsula Ins. Co., 121 So. 3d 433, 443 (Fla. 2013). At the shut of SFR’s case, Tower Hill moved for directed verdict, mentioning that the associated fee to restore introduced by SFR was inadequate proof of ‘actual cash value’ as a result of it didn’t account for depreciation.
Under completely different circumstances, Tower Hill’s level is perhaps well-taken. In this case, nonetheless, Tower Hill’s coverage defines ‘actual cash value’ as:
[t]he value to restore or exchange lined property, on the time of loss or harm, whether or not that property has sustained partial or complete loss harm, with materials of like type and high quality, topic to a deduction for deterioration, depreciation and obsolescence as decided by ‘us.’…
The language of the actual coverage at subject on this case positioned the burden to determine the depreciation on Tower Hill. Under this coverage, SFR didn’t have the preliminary burden to show the quantity of depreciation.
A concurring opinion went even additional:
While I agree with the outcome reached, I write to state that there’s a separate cause the trial court docket shouldn’t have granted a directed verdict. When an insured is entitled to ‘actual cash value’ of a loss beneath the phrases of an insurance coverage coverage, Florida courts have held that the ‘broad evidence rule’ applies. See Worcester Mut. Fire Ins. Co. v. Eisenberg, 147 So. 2nd 575, 576 (Fla. 3d DCA 1962) (‘Florida will adhere to the so-called ‘Broad Evidence Rule.’ Under this rule, any proof logically tending to determine an accurate estimate of the worth of the broken or destroyed property could also be thought of by the trier of info to find out ‘actual cash value’ on the time of loss.’).
SFR admitted into proof an estimate ready by Mills Mehr & Associates, Inc. for Tower Hill. That estimate offered the premise for Tower Hill’s dedication of ‘actual cash value,’ and it included a 21% deduction for depreciation. Under the broad proof rule, I see no cause why that proportion couldn’t be used along with SFR’s estimate. Tower Hill argues that the calculation of a 21% deduction for depreciation can’t be used as a result of SFR’s estimate was for alternative of a higher variety of tiles. However, there isn’t a indication that the tiles included within the Mills Mehr estimate have been of a special age or had extra put on and tear than another tile on the roof. In any occasion, Tower Hill’s argument would bear upon the burden afforded such proof, not its admissibility.
Tower Hill pursues exactitude the place Florida regulation doesn’t require it. See McCall v. Sherbill, 68 So. 2nd 362, 364 (Fla. 1953) (‘[D]amages are not rendered uncertain because they cannot be calculated with absolute exactness. It is sufficient that there be a reasonable basis of computation although the result may be only approximate.’); W. Boca Med. Ctr., Inc. v. Marzigliano, 965 So. 2nd 240, 244 (Fla. 3d DCA 2007) (‘The ‘reasonable certainty’ rule for the calculation of damages doesn’t require mathematical precision[.]’).
This concurring opinion is essential. Rarely are damages precise when figuring out what’s owed following loss to actual property. Contractors cost various quantities for a similar scope of labor. The high quality and assurances of workmanship by the contractors fluctuate as effectively. The methodology of restore could even be at subject. The theoretical damages of loss are normally a spread of “reasonable” for approval at adjustment. However, juries and judges can solely present one quantity on the time of verdict.
For these wanting to check Florida regulation concerning precise money worth, I recommend you learn, Do You Have a Florida Property Insurance Dispute Over Valuation? Understand the Differences Between Replacement Cost Value, Actual Cash Value and How the Broad Evidence Rule Works.
The above picture depicts Merlin Law legal professional Dennis Bailey subsequent to me at his Indian-themed marriage ceremony final night time. Dennis grew up in a household of trial legal professionals. His father was a trial lawyer. His brother Tim continues to be a decide, as Dennis Bailey was earlier than becoming a member of our agency as our General Counsel and Trial Team member.
Thought For The Day
Fast is ok, however accuracy is all the pieces.
—Wyatt Earp
1 SFR Services v. Tower Hill Prime Ins. Co., No. 6D23-118 (Fla. 6th DCA May 26, 2023).