Canadian injured in florida car crash by underinsured motorist - can i sue in florida or canada?

When an Ontario Canadian resident gets injured in a car accident in Florida, the legal and insurance implications can be complex, especially if the at-fault driver is inadequately insured or uninsured.  The Florida case of Erie Ins. Exch. v. Larose (202 So.3d 148), provides critical insights into whether an Ontario Canadian resident can commence an action against their insurance provider in Florida or must do so in Canada.

Case Overview: Erie Ins. Exch. v. Larose
In this case, Albert Christopher Larose, a Florida resident, was injured in a car accident in Florida while driving a vehicle insured by Erie Insurance Exchange, a Pennsylvania-based company. The vehicle was principally garaged in Wisconsin, and Erie had issued the policy to a Wisconsin company. Larose filed a claim for uninsured motorist (UIM) benefits under the policy, which Erie denied, prompting Larose to file a lawsuit in Florida.

Erie moved to dismiss the case, arguing that Florida courts lacked personal jurisdiction over it since Erie had no business operations or contacts in Florida. The Florida trial court initially found that it had jurisdiction, but this decision was later reversed on appeal.

Key Legal Issues

• Long-Arm Jurisdiction: The court considered whether Florida’s long-arm statute, which allows for jurisdiction over out-of-state defendants under certain conditions, applied. Specifically, Larose argued that Erie’s refusal to pay UIM benefits constituted a breach of contract in Florida, thereby establishing jurisdiction.

• Minimum Contacts and Due Process: Even if long-arm jurisdiction was established, the court had to determine whether Erie had sufficient minimum contacts with Florida to satisfy constitutional due process requirements. The Supreme Court's precedent requires that a defendant must purposefully avail itself of conducting activities within the forum state for due process to be satisfied.

Court’s Decision
The appellate court ultimately found that while Larose established a statutory basis for long-arm jurisdiction, Erie did not have the requisite minimum contacts with Florida. The court highlighted that Erie’s issuance of an insurance policy to a Wisconsin entity, covering a vehicle that was primarily garaged in Wisconsin, did not constitute purposeful availment of conducting activities in Florida. The court concluded that subjecting Erie to Florida’s jurisdiction would violate constitutional due process.

Implications for Ontario and Canadian Residents
For Ontario residents injured in Florida, this case underscores several critical points:

• Jurisdictional Challenges: If the at-fault driver is inadequately insured or uninsured, and the injured party seeks to claim UIM benefits from their insurer, the jurisdiction where the action is filed becomes crucial. If the insurer has no substantial connection to Florida, Florida courts may lack personal jurisdiction.
• Action Against Insurers: Ontario residents may need to file claims against their insurers in Ontario or the jurisdiction where the insurance policy was issued, rather than in Florida. This can complicate the legal process, requiring the assistance of legal professionals familiar with cross-border insurance claims.
• Policy Terms and Conditions: It’s essential for policyholders to understand the terms and conditions of their insurance policies, including the geographic scope of coverage and the specified jurisdiction for legal actions.

The Erie Ins. Exch. v. Larose case illustrates the complexities of cross-border insurance claims and highlights the necessity for careful planning and expert legal guidance for Ontario residents injured in Florida. Understanding the jurisdictional nuances can significantly impact the outcome of an insurance claim and ensure that injured parties receive the compensation they deserve.

We regularly assist Canadians injured in the United States.  With offices in Florida and Ontario we are regularly consulted by lawyers both in Canada and the United States to assist with their cross-border injury claims.  If you have questions about an accident in the United States, reach out to us to learn more and to request a Free Consultation. 

Andrew Iacobelli is an experienced personal injury lawyer who established Iacobelli Law Firm with offices located in Ontario, Canada and Florida, U.S.A. Andrew restricts his practice to the representation of personal injury victims in claims involving serious injuries and wrongful death in Canada and the United States.  Andrew is the author of "Are You a Canadian Injured in the United States? Claim the Damages and Insurance Coverage the Right Way". ​

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