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Gruber v. Caremark, Inc., 853 So. 2d 540 (Fla. 5th DCA 2003). Had employer
claimed the benefit of the stay before the Judge of Compensation Claims
("JCC"), under principles of comity, the JCC would have been required to stay
the worker's compensation proceedings until the Pennsylvania stay was lifted.
However, because employer did not raise that issue before the JCC, the District
Court concluded employer waived the benefit of the stay. The Court reasoned
that where an action is not directly against the troubled insurer, but against its
insured under a liability policy, the insurer's assets are not directly at risk and the
reasons for enforcing a foreign court's stay of litigation is a good deal less
compelling than it might be in a direct action against an insurer. 853 So. 2d at
542‐43.
Hudson v. Charles McGovern, III et al., 949 So. 2d 322 (Fla. 2d DCA 2007). All
proceedings in which the insolvent insurer is a party or is obligated to defend a
party in any court or before any quasi‐judicial body or administrative board in
this state shall be stayed for 6 months, or such additional period from the date
the insolvency is adjudicated, by a court of competent jurisdiction to permit
proper defense by the association of all pending causes of action as to any
covered claims; provided that such stay may be extended for a period of time
greater than 6 months upon proper application to a court of competent
jurisdiction. To give FIGA adequate time to investigate, evaluate, and properly
defend a lawsuit against an insured, the statute authorizes a temporary stay of
all proceedings that FIGA is obligated to defend. 949 So. 2d at 323 (citing §
631.67, Fla. Stat. (2006)). Although the statute provides FIGA with an automatic
stay of six months for covered claims it is obligated to defend, the statute does
not limit a stay to six months; the statute allows for extensions of the stay. 949
So. 2d at 323.
In re Aloisi, Anna Patricia, Debtor, 261 B.R. 504 (Fla. M.D. 2001). As a general
rule, the filing of a bankruptcy petition operates to stay litigation involving prepetition
claims against a debtor. 261 B.R. at 508 (citing 1 U.S.C. § 362(a)(1)).
However, the automatic stay can be lifted if an interested party demonstrates
“cause.” 261 B.R. at 508 (citing 11 U.S.C. § 362(d)(1)). The automatic stay can be
lifted if an interested party demonstrates “cause,” which the judiciary must
determine by examining the totality of the circumstances in each particular
case. 261 B.R. at 508 (citations omitted). Modification of automatic stay;
balancing test‐‐Courts have adopted a balancing test for determining whether
to modify the automatic stay to permit a pending action to proceed in another
forum. A court should balance the prejudice to the debtor against the hardship
to the moving party if the stay remains in effect as well as consider the efficient
use of judicial resources, the location of witnesses, documents, and other
necessary parties. A court can examine whether a creditor has a probability of
success on the merits of his case. 261 B.R. at 508 (citations omitted).
Lang's Auto Serv. and First Alliance Ins. Co. v. Proctor, 667 So. 2d 334 (Fla.
Dist. Ct. App. 1995). Six month statutory stay issued under Section 631.67,
Florida Statutes, to allow the Florida Insurance Guaranty Association (the
“Association”) to defend claims is mandatory and applies to cases before
the Florida District Court of Appeals. Because the stay applies not only to
the insolvent insurer, but also to the proceeding itself, the appeal was
stayed as to co‐appellant. Noting the importance of promptly adjudicating
workers’ compensation claims, the Court urged the Association to prosecute
the appeal as soon as possible, if it ultimately assumed responsibility for the
claim.