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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='color:#1F497D'>Here is a blurb from a recent motion to stay that I had to file because of a notice of rehabilitation that I received from a former surety client. Hopefully this will help a little:<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal style='text-align:justify'><span style='color:#1F497D'>Chapter 631, Florida Statutes, known as the “Insurer Rehabilitation Act” (the “Act”) governs insurer insolvency in Florida. <span style='font-variant:small-caps'>Fla. Stat.</span> § 631.001. Deemed integral by Florida’s Legislature to the regulation of the insurance business, the purpose of the Act is, among other things, to “[a]dminister insurer receiverships more efficiently on an interstate and international basis by facilitating cooperation between states[.]” <span style='font-variant:small-caps'>Fla. Stat.</span> § 631.001(3)(g). A surety is an insurer for purposes of the Act. <span style='font-variant:small-caps'>Fla. Stat.</span> §§ 631.011(15), 624.03.<o:p></o:p></span></p><p class=MsoNormal style='text-align:justify;text-indent:.5in'><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal style='text-align:justify'><span style='color:#1F497D'>New York, for example, is a “Reciprocal state,” in which in substance and effect the provisions of the Act are in force, including the provisions requiring that the commissioner of insurance or equivalent insurance supervisory official be the receiver of a delinquent insurer. <span style='font-variant:small-caps'>Fla. Stat.</span> § 631.011(20); <i>Frontier Ins. Co. v. American Title Services</i>, 838 So. 2d 1178 (Fla. 5th DCA 2003). <o:p></o:p></span></p><p class=MsoNormal style='text-align:justify'><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal style='text-align:justify'><span style='color:#1F497D'>In <i>Frontier Ins. Co</i>., the insurer there sought certiorari review of a circuit court order granting its insured’s motion to lift stay entered by the Supreme Court of the State of New York. <i>Id.</i> at 1178. After the plaintiffs in <i>Frontier Ins. Co</i>. initiated their action, the Supreme Court of the State of New York entered an order in a delinquency finding the insurer to be insolvent. <i>Id. </i>The order in Frontier<i> Ins. Co</i>. provided, in pertinent “[a]ll persons are enjoined and restrained from commencing or prosecuting any action, lawsuits or proceedings against [the insurer.]” <i>Id. </i>at 1179.<o:p></o:p></span></p><p class=MsoNormal style='text-align:justify'><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal style='text-align:justify'><span style='color:#1F497D'>There, the insurer filed a notice of stay and suggestion of stay in the Florida circuit court. <i>Id. </i> The insureds filed a motion to lift the stay, which was granted. <i>Id. </i> On certiorari review, the Fifth District Court of Appeal granted the insurer’s petition and quashed the order of the circuit court, recognizing that “[i]t is the public policy of Florida to cooperate with reciprocal states in delinquency proceedings involving an insurer.” <i>Id. </i>In recognizing that New York has adopted a version of the Act, under principles of comity, “the Florida court should have honored the stay entered by the New York court.” <i>Id. </i> <o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><div><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:black'>Ty G. Thompson<o:p></o:p></span></p><p class=MsoNormal><span style='color:black'>Board Certified Construction Attorney</span><span style='color:#1F497D'> | </span><span style='color:black'>Mills Paskert Divers</span><span style='color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><span style='color:black'>100 North Tampa Street, Suite 3700 | Tampa, Florida 33602</span><span style='color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><span style='color:black'>813-769-4802 (direct) | 813-229-3500 (firm) | 813-229-3502 (facsimile)</span><span style='color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><a href="blocked::http://www.mpdlegal.com/" title="http://www.mpdlegal.com/"><span style='color:navy'>www.mpdlegal.com</span></a></span><span style='color:#1F497D'> <o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Confidentiality Disclaimer: This email message and any attachments are private communications sent by a law firm, Mills Paskert Divers, and may contain confidential or legally privileged information meant solely for the intended recipient. If you are not the intended recipient, you are hereby notified that any use, dissemination, distribution or copying of this communication is strictly prohibited. Please notify the sender immediately by replying to this message, then delete the email and any attachments from your system. Thank you.</span><span style='color:#1F497D'><o:p></o:p></span></p></div><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>From:</span></b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'> clc-discussion-bounces@lists.flabarrpptl.org [mailto:clc-discussion-bounces@lists.flabarrpptl.org] <b>On Behalf Of </b>Michelle Kane<br><b>Sent:</b> Friday, May 18, 2012 2:05 PM<br><b>To:</b> Roberts, Hardy L.; Andrea Fair; clc-discussion@lists.flabarrpptl.org<br><b>Subject:</b> Re: [CLC-Discussion] question re: surety in liquidation<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><div id=idOWAReplyText36269><div><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'>I am sure you can file a claim but it would be subject to the priroties of claims as laid out in that state's statute, similar to Florida Statute 631.271</span><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'><o:p></o:p></span></p><div class=MsoNormal align=center style='text-align:center'><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'><hr size=2 width="100%" align=center></span></div><p class=MsoNormal style='margin-bottom:12.0pt'><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>From:</span></b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'> clc-discussion-bounces@lists.flabarrpptl.org on behalf of Roberts, Hardy L.<br><b>Sent:</b> Fri 5/18/2012 1:08 PM<br><b>To:</b> Andrea Fair; clc-discussion@lists.flabarrpptl.org<br><b>Subject:</b> Re: [CLC-Discussion] question re: surety in liquidation</span><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'><o:p></o:p></span></p></div></div><div><p class=MsoNormal><span style='font-size:12.0pt;color:black'>When I encountered this issue in the past I filed a claim with the state bureau that was liquidating the surety. They typically have a claims bar date much like a bankruptcy proceeding. It took more than five years, but the claim ultimately was allowed and there was a substantial payout.</span><o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p><div><div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:10.0pt'>From:</span></b><span style='font-size:10.0pt'> clc-discussion-bounces@lists.flabarrpptl.org [mailto:clc-discussion-bounces@lists.flabarrpptl.org] <b>On Behalf Of </b>Andrea Fair<br><b>Sent:</b> Friday, May 18, 2012 12:42 PM<br><b>To:</b> clc-discussion@lists.flabarrpptl.org<br><b>Subject:</b> [CLC-Discussion] question re: surety in liquidation</span><o:p></o:p></p></div></div><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal>I have a client with potential bond claims against First Sealord Surety, Inc., which is in liquidation. My client does work in many states and their TX attorney told them that they could not file suit against this surety due to the liquidation process (like the automatic stay in bankruptcy) and they have just let some bond claims go by the wayside because of this advice. I question whether that was good advice. The deadline is coming up next week on a potential bond claim and I thought I would just file suit and not serve the surety until I get an answer on this issue. If any of you know the answer and can let me know ASAP, I would greatly appreciate it. Bottom line: Can I file suit against First Sealord? If no, what should I do instead to pursue the bond claim? Of course, I still intend to pursue the GC but I don’t know how the liquidation affects my client’s bond claims. Thank you in advance for all of the feedback! I think the way this group discusses issues and shares information is truly amazing and so helpful. <o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal>Thx-Andrea<o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt;color:#244061'>Andrea M. Fair-Purcell</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt;color:#244061'>Board Certified Construction Attorney</span><o:p></o:p></p><table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 style='border-collapse:collapse'><tr style='height:97.0pt'><td width=204 nowrap valign=top style='width:153.25pt;padding:0in 0in 0in 0in;height:97.0pt'><p class=MsoNormal style='text-align:justify'><span style='font-family:"Arial","sans-serif";color:#244061'>▬▬▬▬▬▬▬▬▬▬▬▬</span><span style='color:#244061'> </span><o:p></o:p></p><p class=MsoNormal style='text-align:justify'><b><span style='font-size:16.0pt;color:#244061'>FAIR•LAW•PLLC </span></b><o:p></o:p></p><p class=MsoNormal style='text-align:justify'><span style='font-family:"Arial","sans-serif";color:#244061'>▬▬▬▬▬▬▬▬▬▬▬▬</span><span style='color:#244061'> </span><o:p></o:p></p><p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt;color:#244061'>13046 Racetrack Road #236 </span><o:p></o:p></p><p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt;color:#244061'>Tampa, FL 33626 <br>(813) 412-1077 phone </span><o:p></o:p></p><p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt;color:#244061'>(877) 879-4990 fax <br><a href="http://www.fairconstructionliens.com/">www.fairconstructionliens.com</a></span><o:p></o:p></p></td><td width=108 nowrap valign=top style='width:81.0pt;padding:0in 0in 0in 0in;height:97.0pt'><p class=MsoNormal style='text-align:justify'><img border=0 width=107 height=140 id="Picture_x0020_1" src="https://mail.michellebkanepa.com/Exchange/Michelle/Drafts/RE:%20%5bCLC-Discussion%5d%20question%20re:%20surety%20in%20liquidation.EML/1_multipart/image001.jpg" alt="cid:image001.jpg@01CC8816.941390B0"><o:p></o:p></p></td></tr></table><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal style='margin-bottom:12.0pt'><span style='font-size:9.0pt;color:#244061'>The contents of this e-mail message and any attachments are intended solely for the addressee(s) named in this e-mail message. This communication is intended to be and to remain confidential and may be subject to applicable attorney/client and/or work product privileges. If you are not the intended recipient of this e-mail message, or if this e-mail message has been addressed to you in error, please immediately alert the sender by reply e-mail and then delete this e-mail message and its attachments. Do not deliver, distribute or copy this e-mail message and/or any attachments and if you are not the intended recipient, do not disclose the contents or take any action in reliance upon the information contained in this communication or any attachments. </span><o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p></div></div></body></html>