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<DIV dir=ltr align=left><SPAN class=696043514-29092011><FONT color=#0000ff
size=2 face=Arial> Per Fla. Stat. s. 627.707(5)(c) governing
sinkhole related claims, the insurer is required to obtain the "written
approval" of both the insured and the lender prior to making payment to the
contractor. Insurer is legally compelled to either issue the check for
endorsement of all or otherwise get the approval in writing of owner and lender
prior to making payment to contractor. Alternatively, per terms of most
property policies, the insurer may issue check jointly to insured and
lienholder of record (typically designated as a "loss payee" under
the policy). Either way, the path to resolution obviously runs
through the lender. </FONT></SPAN></DIV>
<DIV dir=ltr align=left><SPAN class=696043514-29092011><FONT color=#0000ff
size=2 face=Arial></FONT></SPAN> </DIV>
<DIV dir=ltr align=left><SPAN class=696043514-29092011><FONT color=#0000ff
size=2 face=Arial> It would appear that the real issue relates
to the value looking forward of the newly stabilized property. If the effect of
the stabilization work is to restore the value of the collateral, then the
lender should not be able to glom the proceeds. On other hand, if the
property after stabilization is still devalued materially from where it
was prior to sinkhole activity, then the lender may have a legitimate claim
to the insurance proceeds. Appears to me that it may come down to
some appraisal opinions. Regrettably, sounds like a real tar baby
for all involved.</FONT></SPAN></DIV><!-- Converted from text/rtf format -->
<P align=left><SPAN lang=en-us><B>Michael R. Gibbons (<A
href="http://lowndes-law.com/our-people/michael-r-gibbons">Bio</A>)<BR>Shareholder<BR></B></SPAN><SPAN
lang=en-us><FONT color=#008000 size=2>Lowndes, Drosdick, Doster, Kantor &
Reed, P.A.<BR></FONT></SPAN><SPAN lang=en-us><FONT color=#008000 size=2>450
South Orange Avenue, 8th Floor<BR></FONT></SPAN><SPAN lang=en-us><FONT
color=#008000 size=2>Orlando, FL 32801<BR></FONT></SPAN><SPAN lang=en-us><FONT
color=#008000 size=2>Phone: 407-418-6378<BR></FONT></SPAN><SPAN lang=en-us><FONT
color=#008000 size=2>Fax: 407-843-4444<BR></FONT></SPAN><SPAN lang=en-us><FONT
color=#008000 size=2>email:</FONT> <A
href="mailto:michael.gibbons@lowndes-law.com"><FONT color=#0000ff
size=2>michael.gibbons@lowndes-law.com</FONT></A></SPAN><BR><SPAN
lang=en-us><FONT color=#008000 size=2>website:</FONT> <A
href="http://www.lowndes-law.com/"><FONT color=#0000ff
size=2>http://www.lowndes-law.com</FONT></A></SPAN><BR><BR>
<IMG src="cid:696043514@29092011-0D28"><BR></P>
<DIV> </DIV><BR>
<DIV dir=ltr lang=en-us class=OutlookMessageHeader align=left>
<HR tabIndex=-1>
<FONT size=2 face=Tahoma><B>From:</B>
constructionlaw-bounces@lists.flabarrpptl.org
[mailto:constructionlaw-bounces@lists.flabarrpptl.org] <B>On Behalf Of
</B>Andrea Fair<BR><B>Sent:</B> Thursday, September 29, 2011 9:58
AM<BR><B>To:</B> RPPTL constructionlaw<BR><B>Subject:</B>
[RPPTL-constructionlaw] question re: priority of claims to insurance
proceeds<BR></FONT><BR></DIV>
<DIV></DIV>
<DIV class=WordSection1>
<P class=MsoNormal><SPAN style="COLOR: #1f497d">I represent a contractor who
furnished ground stabilization related to sinkhole activity. My client has
a lien on the property for the work. The insurance company has cut a check
payable to the owner, my client, and the mortgage lender. The owner’s
attorney is holding the check but is trying to get the insurance company to drop
the owner’s name from the check and reissue a new check (I suppose to avoid any
involvement in a dispute between my client and the lender for the insurance
proceeds). The owner is also considering interpleader. The lender
has requested that the owner endorse the check and send it to them and then they
will consider what to do with it from there. The owner does not want to do
that because they feel the lender will not release the funds to my client and
then the owner still has liability to my client. The mortgage was recorded
before the NOC for my client’s work. The mortgage provides that insurance
proceeds will be applied to restoration or repair of the property if it is
economically feasible and lender’s security is not lessened. Any
suggestions on how to proceed from this point?<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="FONT-FAMILY: 'Times New Roman','serif'; COLOR: #244061; FONT-SIZE: 12pt"><o:p> </o:p></SPAN></P>
<P class=MsoNormal><SPAN
style="FONT-FAMILY: 'Times New Roman','serif'; COLOR: #244061; FONT-SIZE: 12pt">Andrea
M. Fair-Purcell<o:p></o:p></SPAN></P>
<P class=MsoNormal><SPAN
style="FONT-FAMILY: 'Times New Roman','serif'; COLOR: #244061; FONT-SIZE: 12pt">Board
Certified Construction Attorney<o:p></o:p></SPAN></P>
<P class=MsoNormal><SPAN
style="FONT-FAMILY: 'Times New Roman','serif'; COLOR: #244061">▬▬▬▬▬▬▬▬▬▬▬▬<o:p></o:p></SPAN></P>
<P class=MsoNormal><B><SPAN
style="FONT-FAMILY: 'Times New Roman','serif'; COLOR: #244061; FONT-SIZE: 16pt">FAIR•LAW•PLLC</SPAN></B><SPAN
style="FONT-FAMILY: 'Times New Roman','serif'; COLOR: #244061; FONT-SIZE: 16pt"><o:p></o:p></SPAN></P>
<P class=MsoNormal><SPAN
style="FONT-FAMILY: 'Times New Roman','serif'; COLOR: #244061">▬▬▬▬▬▬▬▬▬▬▬▬</SPAN><SPAN
style="FONT-FAMILY: 'Times New Roman','serif'; COLOR: #244061; FONT-SIZE: 12pt"><BR>13046
Racetrack Road #236 <BR>Tampa, FL 33626 <BR>(813) 412-1077 phone<BR>(877)
879-4990 fax <BR>www.fairconstructionliens.com<o:p></o:p></SPAN></P>
<P class=MsoNormal><SPAN
style="FONT-FAMILY: 'Times New Roman','serif'; COLOR: #244061; FONT-SIZE: 12pt"><o:p> </o:p></SPAN></P>
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