Background
Restore All, LLC, as assignee of Antonio Gonzalez, sued Southern Fidelity Insurance Company for breach of contract after Southern denied coverage for repair work. While the case was pending, Southern became insolvent and entered liquidation, staying the proceedings.
In January 2025, the county court lifted the stay and substituted the Florida Insurance Guaranty Association as defendant. The substitution order stated that FIGA had to respond to an amended complaint or face a court-entered default without further notice. FIGA filed a notice of appearance before Restore All filed its amended complaint, but the county court later entered a default on its own initiative without an application for default or notice to FIGA, followed by a default final judgment.
The Court’s Holding
The Fourth District reversed. Because FIGA had filed a notice of appearance, it had filed a document in the action and was therefore entitled under Florida Rule of Civil Procedure 1.500(b) to notice of an application for default before a default could be entered.
No application for default existed or was served. The county court’s purportedly self-executing warning in its substitution order did not satisfy the rule’s notice requirement. The lack of required notice denied FIGA due process, rendering both the default and resulting default final judgment void.
Key Takeaways
- A notice of appearance triggers the Rule 1.500(b) requirement that the party receive notice of an application for default.
- A court order warning that default will follow a missed deadline cannot create an automatic, notice-free default.
- A default and default final judgment entered without required notice are void and must be vacated.
Why It Matters
The decision reinforces that Florida courts cannot bypass the default-notice procedure through self-executing language in scheduling or substitution orders. A party that has appeared remains entitled to notice and an opportunity to respond before entry of default.
For insurers and guaranty associations substituted into cases after an insurer’s insolvency, filing an appearance preserves this important procedural protection.