Flash Report: Florida Supreme Court Rules On Chapter 558 "Suit" Issue – A Key Decision Regarding Construction Defect Claims

On December 14, 2017, The Florida Supreme Court issued its long-awaited opinion in the case of Altman Contractors, Inc. v. Crum and Forster Specialty Insurance Company; Case No. SC16-1420. This case answers the question of whether Florida's statutory pre-suit notice and repair process for resolving construction defect claims, under Florida Statutes Chapter 558, constitutes a "suit" within the definition of a standard ISO commercial general liability (CGL) policy.

The Florida Supreme Court concluded that the Chapter 558 process qualifies as a "suit" under the standard ISO definition, but noted that the Chapter 558 framework was not a "civil proceeding" as it did not produce legally binding results, did not take place in a court of law, and was nothing more than a voluntary dispute resolution process. However, the Supreme Court noted that the Chapter 558 process met the criteria of an "alternative dispute resolution proceeding" and could therefore trigger a duty to