The insurer for a South Florida law firm that represented
the collapsed Surfside condominium – lawyers known for
fighting off attempts to reform condo safety laws – has
asked a judge to absolve the carrier of coverage
responsibility for the law firm.
Allied World Surplus Lines Insurance Co., an Arkansas-based
company owned by Fairfax Financial Holdings, in 2020 issued
a $10 million lawyers’ professional liability insurance
policy to the Becker & Poliakoff law firm. The law firm,
based in Fort Lauderdale, represented Champlain Towers South
and many other condominiums and their associations across
the state, the federal lawsuit explains.
After the Champlain towers collapsed in June, killing 98
people, the towers and its association filed suits against
Becker, charging that the lawyers were grossly negligent for
failing to warn the condo owners about imminent problems,
about inadequate repair reserve funds, and for ignoring
engineering reports about the troubled building.
Now, Allied argues that Becker’s policy excludes coverage
for legal defense costs if the law firm’s actions resulted
in bodily injury or destruction of property.
“Allied World is entitled to a declaratory judgment in its
favor, stating that Allied World has no liability under the
policy issued to Becker for any damages or claim expenses of
any kind arising out of or related to the underlying action
or cross-claim because the allegations fall within the scope
of the policy’s bodily injury/property destruction
exclusion,” reads the lawsuit, filed Tuesday in the U.S.
District Court for the Southern District of Florida.
The action was filed for Allied by Heidi Raschke of the
Carlton Fields law firm in Tampa.
Becker, which also represents insureds and insurers in
coverage disputes, has yet to respond to the action, and
could not be reached for comment Thursday. It has previously
denied liability, according to news reports.
Allied said in its complaint that it had informed the law
firm last November that the exclusion applied. Despite that,
Allied agreed to provide legal defense coverage, but said it
would seek repayment from Becker if a court later decides
that the exclusion does, in fact, bar coverage. In December,
the Becker firm rejected that plan.
South Florida news reports have said that Becker for decades
has lobbied against legislative reform efforts that could
have required condominium associations to keep more money in
repair funds and would have made it harder for condo unit
owners to veto repairs.
“A lot of stuff I tried to propose, the No. 1 group that
would fight me was Becker & Poliakoff,” former state Rep.
Julio Robaina, R-Miami, told the Sun Sentinel newspaper last
fall. “That was my nemesis.”
Becker’s co-founder, Alan Becker, served in the state
Legislature in the 1970s and helped draft the
condo-maintenance rules that have proven difficult to
reform, according to news reports.
The firm has declined to respond to most questions from the
newspaper about its lobbying efforts.
“To say our community association practice is against safety
is a gross misrepresentation,” the firm’s chief marketing
officer told the Sun-Sentinel.