Florida Record

Wednesday, October 23, 2019

Assignee of Jacksonville condo group wins ruling against Lexington Insurance

Federal Court

By Marian Johns | Jul 31, 2019


JACKSONVILLE — An assignee for a Florida condo association has won an attempt to remand its case against an insurer to state court and to add the condo association as a defendant after the association was found to have cashed in more than $200,000 in insurance payments without the assignee's knowledge. 

According to the July 10 U.S. District Court for the Middle District of Florida Jacksonville Division filing, plaintiff Alron Construction LLC, as assignee of Castaways Cove Condo Association Inc., asked the court to file an amended complaint and to remand the lawsuit to state court in its case against defendant Lexington Insurance Company. 

Alron, who is seeking insurance coverage from Lexington as the assignee for the Castaways Cove Condo Association, alleges breach of contract against Lexington for its failure to cover storm damage that the condo development sustained. Alron also filed an amended complaint to name Castaways as a defendant while showing evidence that without its knowledge, the condo association had converted two checks it already received from Lexington which were made out to both Arlon and the condo association.

Lexington argues that Alron's wanting to add the condo association to the compliant is an attempt to "defeat diversity jurisdiction." Alron argues "it would be prejudiced" if it had to litigate separate lawsuits. 

The court agreed with Alron and granted their leave to file an amended complaint as well as remanded the suit to state court with U.S. District Judge Timothy Corrigan stating "Castaways is properly named as a defendant in Alron’s revised proposed amended complaint."

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U.S. District Court for the Middle District of Florida, Jacksonville Division

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