Mortgagors alleged that their lender placed insurance on their mortgaged property by force after the insurance lapsed that they had agreed in their mortgage agreement to keep in place on the property. The Court had no problem with this.
The mortgagors alleged that their lender breached their mortgage agreement, apparently not just because the lender force-placed insurance which, as the Court noted, the lender had a right to do under the circumstances.
Instead, the mortgagors alleged that the lender force-placed insurance (LFPI) was objectionable on the basis of two allegations: (1) they were forced to pay excessive premiums under the LFPI policy and (2) the lender failed to include them on the policy. On these two allegations, they claimed that the lender acted in bad faith and breached fiduciary obligations under Florida law as a result.
In an opinion that is published at less than one page in Westlaw, the Court agreed. The lender's motion to dismiss was denied.
The case has just been reported on Westlaw. It is Meyer v. Bank of Am., N.A., No. 3:21-cv-1088-HES-JRK, 2022 WL 18492520 (M.D. Fla. Aug. 18, 2022).
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