Edward Krakauer and Galloway’s Fort Lauderdale team secured summary judgment in a property insurance dispute challenging a policy endorsement allowing the carrier to offer (and to which the insured must consent) a program designed to allow homeowners an alternative way for timely and efficient repairs. The homeowners attempted to argue the program under this endorsement was an attempt by the carrier to avoid liability under the case of Drew v. Mobile USA, which held that carriers are liable for any damages caused by the contractor appointed by the carrier’s vendor. The ruling reinforces key distinctions from Drew v. Mobile USA and showcases Galloway’s strategic approach to Florida litigation.
Miami-Dade First-Party Property Insurance Defense
In this case, the suit arose from alleged improper workmanship by a contractor appointed through the carrier’s vendor. Plaintiffs argued the program was a veiled “Drew contract,” seeking to impose option-to-repair liability on the carrier.
Under the case of Drew v. Mobile USA, the insurance carrier exercised a provision called “option to repair.” There, the contractor was working at the direction of the insurance carrier and hired directly by the insurance carrier. Due to the level of control the carrier exerted over the contractor, the court found the carrier liable for any damages caused by the contractor’s poor workmanship.
Krakauer demonstrated critical differences in this case: the homeowner contracts directly with the contractor selected by a third-party vendor, the carrier does not control the contractor’s work, and participation requires mutual consent rather than a unilateral option to repair.
The court granted summary judgment for Galloway’s client, rejecting efforts to extend Drew-based liability to the carrier for alleged contractor workmanship under the endorsement. This outcome affirms carriers’ rights to offer similar programs as a practical path to timely, effective property restoration.
Galloway Representation in South Florida
Guided by significant first-party property and coverage experience, Edward Krakauer and his team built a precise and persuasive briefing to move the case efficiently to a favorable result. He employed a strategic approach that was backed by a deep understanding of the challenges faced by his clients.
With offices in Pensacola, Tampa, Fort Lauderdale, and Jacksonville, Galloway delivers responsive, pragmatic representation for insurers and businesses facing disputes and claims. Another favorable result in South Florida demonstrates the Firm’s capability for clients operating in Florida.
