Shareholder Matt Scarfone Obtains Sanctions Against Law Firm for Frivolous AOB Lawsuit

Jan 19, 2021

A Palm Beach County Court recently granted an insurer’s motion for sanctions under section 57.105, Florida Statutes, against the attorneys for a service provider who filed suit under an assignment of benefits (“AOB”).  There was no dispute that the AOB did not comply with the recently enacted AOB law, section 627.7152, Florida Statutes, which provides strict requirements for any AOB executed on or after July 1, 2019.  Even though the AOB at issue was executed after July 1, 2019, the plaintiff’s attorneys argued the new AOB law did not apply.  The court found their argument was frivolous, and that they knew or should have known the lawsuit had no valid legal basis.  The plaintiff’s attorneys were ordered to pay the insurer’s reasonable attorney’s fees incurred in defending the lawsuit.  Although this order is not yet final, the only issue that remains to be decided is the amount of the insurer’s reasonable attorney’s fees.

Read the order here.