FSLSO » Documents & Publications » News Releases » 11/13/2003

FSLSO News Release :: 11/13/2003

Below is an electronic version of the Judge's order (filed 11/03/2003) modifying the original "Motion for Relief From Judgement" filed on 10/30/2003.

IN THE UNITED STATES DISTRICT COURT FOR THE
NORTHERN DISTRICT OF FLORIDA
TALLAHASSEE DIVISION

ORDER MODIFYING JUDGEMENT

The final judgment in this action declared that §624.425, §626.741, and §626.927 of the Florida Statutes violate the Privileges and Immunities Clause and Equal Protection Clause of the United States Constitution to the extent that they deny to Florida licensed nonresident insurance agents the same rights and privileges that they afford to Florida licensed resident agents. Accordingly, the Defendant Florida Commissioner of Insurance, in his official capacity, was enjoined from denying to Florida licensed nonresident agents the same rights and privileges that Florida licensed resident agents possess under §624.425, §626.741, and §626.927 of the Florida Statutes. The order announcing these rulings also stated, "Nothing in this order affects the right and ability of the Defendant Florida Commissioner of Insurance to enforce against Florida licensed nonresident agents all the same requirements imposed on Florida licensed resident agents under the same circumstances." The order and judgment were entered on September 30, 2003.

On October 30, 2003, Defendant filed a motion for relief from judgment, seeking to delay implementation of one portion of the ruling the portion addressing §626.927, which deals with surplus lines agents until June 30, 2004. Plaintiff has consented to the motion.

Defendant characterizes its motion as one arising under Federal Rule of Civil Procedure 60(b)(6). That rule and the court's inherent equitable authority allow modification of an injunction for good cause. Defendant has adequately shown good cause: the need to put into place appropriate procedures for complying with the court's order, while also affording the Florida Legislature an opportunity to address these issues consistently with constitutional requirements. The judgment will be modified as requested.

One other point deserves mention. Defendant's motion reiterates and expands upon its positions regarding the wisdom and need for effective regulation of surplus lines agents. Nothing in the court's order should be read to question to any degree the ability of the state to provide such regulation. The court's order imposes no reciprocity requirements and diminishes in no respect the state's ability to insist upon appropriate demonstrations of honesty, ability and knowledge. What the state cannot do and all it cannot do, under the judgment as entered is exclude nonresidents from the same rights. and privileges, on the same terms and conditions, as are afforded the state's own residents.

For these reasons,

IT IS ORDERED:

Defendant's motion for relief from judgment (document 44) is GRANTED. The judgment is modified to provide that Defendant shall comply with the judgment, to the extent it relates to §626.927, Florida Statutes, and matters involving surplus lines agents, on and after July 1, 2004. Compliance with those portions of the judgment is not required (by the judgment in this action) prior to July 1, 2004.

SO ORDERED this 3rd day of November, 2003.