The case of Biscayne Cove Condo. Ass'n v. QBE Insurance Corp., 2013 WL 2646828 (S.D. Fla. June 12, 2013), presented U.S. Magistrate Judge O'Sullivan with unique opportunities for ruling. It is a declaratory judgment action filed by a condominium association requesting a declaration that it has a right to appraisal of its Hurricane Wilma damage claim. The condominium association bases this claim on the appraisal provision of its property insurance policy issued by the defendant. The defendant insurance company did not dispute coverage under the policy, only the value of the damaged property. Biscayne Cove Condo. Ass'n v. QBE Insurance Corp., 2013 WL 2646828 *3 (S.D. Fla. June 12, 2013).
One of the opportunities to rule was presented by the condominium association's motion in limine to prevent the insurance company from putting on expert testimony in the declaratory judgment action concerning valuation. The insurance company raised an affirmative defense of fraud in that case, and contended that it should be allowed to put on expert testimony on the fraud issue.
The Court agreed with both positions in ruling that expert testimony was admissible on the fraud issue, but not concerning valuation, in the declaratory judgment action as distinct from the appraisal proceeding if any:
In the instant case, the defendant will be allowed to present evidence on causation and valuation as it relates to the affirmative defense of fraud. Evidence regarding valuation and causation is necessary to determine if the plaintiff made purposeful misrepresentations to QBE. Evidence regarding causation and valuation, however, is not relevant to the other issues of this action for declaratory judgment.
Biscayne Cove Condo. Ass'n v. QBE Insurance Corp., 2013 WL 2646828 *5 (S.D. Fla. June 12, 2013).
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