In Old Dominion Ins. Co. v. Tipton, No. 2D18-24, 2019 WL 1868194 (Fla. 2d DCA April 26, 2019) the Court held that a litigation stay does not stay the 90-day waiting period for serving a valid proposal for settlement pursuant to Fla. R. Civ. P. 1.442. In Tipton, the insureds filed a complaint against the insurer for breach of contract in relation to a sinkhole claim. Subsequently, the insurer filed a notice of automatic stay pending completion of a neutral evaluation pursuant to Fla. Stat. 627.7074 (10). After the stay was lifted, and 132 days after the insureds filed suit, the insurer served a proposal for settlement.
The insureds argued that the proposal was premature because the stay effectively stayed the 90-day waiting period under Fla. R. Civ. P. 1.442. The insureds argued that the legislative purpose of a stay pending neutral evaluation under Fla. Stat. 627.7074 (10) is to efficiently resolve sinkhole disputes and avoid unnecessary litigation. The insureds further argued that refusing to stay the 90-day waiting period for a proposal for settlement would frustrate the legislative purpose behind Fla. Stat. 627.7074 (10).