In a recent decision, Florida’s First District Court of Appeal enforced an express New York choice of law/forum selection provision in an environmental liability policy insuring a gas station located in Florida.
In Land O’Sun Management Corp. v, Commerce and Industry Ins. Co., Case No. 1D06-5331 (Fla. 1st DCA July 26, 2007), the insurer refused to defend its insured in an administrative proceeding which sought to impose clean up costs for underground pollution at the insured location. The insured then brought a coverage action in Florida against the insurer and the insurer moved to dismiss the suit based upon the choice of law/forum selection clause. The trial court dismissed the suit based upon the clause and the First District affirmed.
On appeal, the insured argued that the choice of law/forum selection clause should be found invalid on public policy grounds. The insured specifically argued that the choice of a New York forum and New York law violated “Florida’s interest in environmental protection and insurance regulation.” The First District rejected this argument holding that: 1) because the Florida Office of Insurance Regulation had reviewed and approved the policy, including the clause, it could not be said that the clause violated public policy, and 2) the constitutional separation of powers precluded the court from directing the legislative branch to adopt the insured’s urged public policy statements. The First District affirmed the dismissal and ruled that any litigation regarding the policy must proceed in New York.
A copy of the decision can be found here.
