County Court Rules that Insurer’s Action Seeking Reimbursement from School Board for PIP Benefits Paid on Behalf of Insured Is Not Barred by Sovereign Immunity.

State Farm sought reimbursement from the School Board of Orange County for personal injury protection (PIP) benefits paid to its insured for injuries sustained while the insured was a passenger on a school bus owned by the school board. In filing suit, State Farm sought relief pursuant to Fla. Stat. 627.7405, which allows an insurer to seek reimbursement for PIP benefits paid to an insured from the owner of a commercial motor vehicle if the benefits paid result from the insured being injured while having been an occupant of the commercial motor vehicle or having been struck by the commercial motor vehicle while not an occupant of any self-propelled vehicle. 

The court found that the undisputed facts established that the vehicle in question was not being used for personal or private purposes at the time of the accident and was, instead, used for the school board’s business, professional and/or occupational purposes. In response to the suit, the school board argued that the doctrine of sovereign immunity applied and that there was no express waiver of sovereign immunity. State Farm countered this argument by citing the statutory definition of commercial motor vehicle found in Fla. Stat. 627.732(3) and arguing that the school bus did not meet this definition. Additionally, State Farm relied on the case of Lee Cty. Sch. Bd. v. State Farm Mut. Auto. Ins. Co., 276 So. 3d 352 (Fla. 2d DCA 2019) [44 Fla. L. Weekly D1352b]. The court found this case binding and, thus, issued judgment in favor of State Farm, ruling that sovereign immunity does not bar the claim for reimbursement under Fla. Stat. 627.7405. 

This order is significant as it further establishes Lee Cty. Sch. Bd. v. Stat Farm as binding precedent, allowing a carrier to subrogate in claims involving an injury incurred while an insured is a passenger of a school bus. 

_{Case Law Alerts, 1st Quarter, January 2024 is prepared by Marshall Dennehey to provide information on recent developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. Copyright © 2024 Marshall Dennehey, all rights reserved. This article may not be reprinted without the express written permission of our firm.}