American Alternative Insurance v. Superior Court

American Alternative Insurance Corporation and other insurers, by petition for writ of mandate, challenge an order granting summary adjudication in favor of their insureds, Aero Falcons, LLC (Aero Falcons), and Sands Media, Inc. (Sands Media) (collectively the insureds). American contends the trial court erroneously determined that the insurer has a duty under its policy to reimburse the insureds for attorney fees incurred to recover possession of an airplane after it was seized by the sheriff in Bay County, Florida. We resolve an ambiguity in policy language in favor of the objectively reasonable expectations of the insureds and conclude that American is required to reimburse expenses reasonably incurred by the insureds to recover possession of the seized airplane, including attorney fees. We therefore will deny the petition.

FACTUAL AND PROCEDUAL BACKGROUND

1. Factual Background

Aero Falcons is a limited liability company whose sole member is Sands Media. Sands Media is a corporation owned by one Joseph Francis. American issued a Broad Horizon Aviation Insurance Policy to Aero Falcons and Sands Media insuring a private airplane owned by Aero Falcons. The policy…