COnSTruCTiOn ASSignMenTS OF BeneFiTS Aren ’ T whAT They uSeD TO Be
Construction law Section Chairs : Debbie Crockett - Cheffy Passidomo , P . A . & Katherine Heckert , Carlton Fields
Assignments of benefits have been limited in scope , and should be considered carefully before use .
Traditionally , an Assignment of Benefits ( AOB ) is an agreement that , once signed , transfers the insurance claims rights or benefits of a policy to a third party . In the construction setting , AOB ’ s have been commonly used in homeowner insurance claims by restoration companies and contractors . Beginning in the mid-2000s , the insurance industry began fighting to curb AOBs , as the one-way fee shifting for claims against carriers was stoking claims by remediation contractors . Significant litigation arose regarding enforceability of AOBs and the insurance industry ’ s ability to limit assignment rights .
In 2019 , the Florida Legislature enacted §§ 627.7152 & 627.7153 ,
Fla . Stat ., which dramatically limited the effectiveness and appeal of AOBs . Insurers can now restrict enforceability , and before taking an assignment , you should confirm it is not barred .
Assignment agreements must allow the assignor to rescind the agreement within 14 days of
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Construction Law Section CLE
On February 18 , the Construction Law Section held a CLe webinar titled “ effective Construction Arbitrations — The panel ’ s perspective ,” offering attendees insight on various topics , such as the use of technology and virtual witness testimony at arbitrations , use of case law , recommendations on discovery disputes , and timing of trial briefs . At this webinar , we had the privilege of hearing from our panelists — paul ullon of Carlton Fields , John Vento of Trenam Law , rodger peters of roger J . peters , eSQ ., FCiArb , and moderator Timothy D . woodward of Shutts & Bowen LLp . hCBA would like to thank the panelists for their insight .
2 0 M A Y - J U N E 2 0 2 1 | H C B A L A W Y E R