{"id":904572,"date":"2025-07-15T16:34:09","date_gmt":"2025-07-15T22:34:09","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=904572"},"modified":"2025-07-15T16:34:11","modified_gmt":"2025-07-15T22:34:11","slug":"coblentz-agreement-rightfully-recovering","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/coblentz-agreement-rightfully-recovering\/","title":{"rendered":"Rightfully Recovering Under A Coblentz Agreement"},"content":{"rendered":"\n

David Adelstein | Florida Construction Legal Updates<\/a><\/p>\n\n\n\n

A recent case out of the Middle District of Florida, The Peninsula at St. John\u2019s Center Condominium<\/em> Association, Inc. v. Amerisure Ins. Co<\/em>., 2025 WL 1547631 (M.D.Fla. 2025) discusses what a party must do to RIGHTFULLY recover under a Coblentz<\/em> agreement under Florida law:<\/p>\n\n\n\n

\u201cIn Florida, a party seeking to recover under a Coblentz<\/em> agreement must prove: (1) coverage; (2) a<\/strong> wrongful refusal to defend; and (3) that the settlement was objectively reasonable and made in good faith.<\/strong> \u201cFlorida law clearly states that liability of an insurer depends upon whether the insured\u2019s claim is within<\/strong> the coverage of the policy. This remains true even when the insurer has unjustifiably failed to defend its<\/strong> insured in the underlying action.\u201d  \u201cA determination of coverage, therefore, is a condition precedent to<\/strong> any recovery against an insurer.\u201d<\/strong>
 <\/strong>
The party seeking recovery has the burden \u201cto allocate the settlement amount between covered and<\/strong> uncovered claims.\u201d  \u201c[A]n insurer faced with a Coblentz<\/em> action has the right to litigate its contractual duty<\/strong> to indemnify on the actual facts of the underlying litigation just as it would in an action against its<\/strong> insured.\u201d  Once the party seeking to recover under a Coblentz<\/em> agreement has established coverage and<\/strong> allocated damages amounts between covered and uncovered claims, the burden shifts to the defendant<\/strong> who must then prove that either the Coblentz<\/em> agreement was unreasonable or was negotiated in bad faith.<\/strong><\/p>\n\n\n\n

Id<\/em>. At *5 (internal citations omitted).<\/p>\n\n\n\n

In this case, an insurer for a contractor denied coverage, and thus, the duty to defend, in a large, complex construction defect coverage lawsuit with multiple parties. The association-claimant entered into a\u00a0Coblentz<\/em>\u00a0agreement<\/a>\u00a0with the contractor and then the association, through an assignment of the general contractor\u2019s rights under the contractor\u2019s commercial general liability policy, sued the contractor\u2019s insurer. \u00a0The Middle District held that the insurer was not liable to the association under the\u00a0Coblentz<\/em>\u00a0framework. This means the association was collecting nothing from the contractor\u2019s insurer.<\/p>\n\n\n\n

First, it was undisputed that the operative complaint in the construction defect lawsuit was a third amendment complaint. Yet, this amended complaint was never presented to the insurer for a coverage position. It should have, regardless of whether the insurer denied its obligations under a previous version of the complaint. Thus, there was never a wrongful denial to defend to trigger the\u00a0Coblentz<\/em>\u00a0framework<\/a>\u00a0because the insurer was not given the operative complaint to determine whether it had a duty to defend.<\/p>\n\n\n\n

Next, the Middle District found that the insurer was not liable under the\u00a0Coblentz<\/em>\u00a0framework<\/a>\u00a0(even if the insurer had been given the operative complaint) because the association-claimant \u201chas not satisfied its burden to allocate between covered and uncovered claims<\/strong>.\u201d The Peninsula at St. John\u2019s Condominium Ass\u2019n, supra<\/em>, at *11.\u00a0The claimant has the burden to allocate damages between covered and uncovered claims and the inability to allocate would destroy the Coblentz framework<\/strong>.\u00a0Id<\/em>. at *9. (\u201c[T]he Coblentz Agreement is unenforceable because it does not properly allocate between covered and uncovered claims.\u201d).<\/p>\n\n\n\n

Moreover, as if the other two bases were not enough, the Middle District further maintained the Coblentz<\/em> Agreement was not reasonable. In other words, it included unreasonable amounts. \u201cWhat Coblentz does not do is authorize the insured to indiscriminately load the carrier\u2019s wagon with bricks of damage that no reasonable person would expect as consequences of the underlying claim<\/strong>.\u201d The Peninsula at St. John\u2019s Condominium Ass\u2019n, supra<\/em>, at *11. The Middle District found the damages amount subject to the Coblentz<\/em> agreement was not reasonable as it loaded up damages and did not account for other party\u2019s liability or amounts in which it settled with other parties.<\/p>\n\n\n\n

There are times considering a Coblentz<\/em> agreement is 100% worth it. If considering a Coblentz<\/em> agreement, make sure to draft it correctly to maximize the best arguments you can in pursuing coverage. Do it right!<\/p>\n\n\n\n

\n\n\n\n

When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes – please call Advise & Consult, Inc. at 888.684.8305, or email experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

David Adelstein | Florida Construction Legal Updates A recent case out of the Middle District of Florida, The Peninsula at St. John\u2019s Center Condominium Association, Inc. v. Amerisure Ins. Co., 2025 WL 1547631 (M.D.Fla. 2025) discusses what a party must do to RIGHTFULLY recover under a Coblentz agreement under Florida law: \u201cIn Florida, a party seeking to recover under… Continue reading Rightfully Recovering Under A Coblentz Agreement<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[10721],"tags":[9895,12189,94,22],"class_list":["post-904572","post","type-post","status-publish","format-standard","hentry","category-insurance","tag-advise-consult","tag-coblentz-agreement","tag-florida","tag-insurance","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nRightfully Recovering Under A Coblentz Agreement - 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