Supreme Court of Florida

____________

No. SC14-897

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JOHN ROBERT SEBO, etc.,

Petitioner,

vs.

AMERICAN HOME ASSURANCE COMPANY, INC.,

Respondent.

[December 1, 2016]

PERRY, J.

John Sebo seeks review of the decision of the Second District Court of 

Appeal in American Home Assurance Co. v. Sebo, 141 So. 3d 195 (Fla. 2d DCA 

2013), on the ground that it expressly and directly conflicts with a decision of the 

Third District Court of Appeal in Wallach v. Rosenberg, 527 So. 2d 1386 (Fla. 3d 

DCA 1988), on a question of law. We have jurisdiction. See art. V, § 3(b)(3), Fla. 

Const. For the following reasons, we quash the decision in Sebo, and approve the 

rationale of the Third District in Wallach.
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FACTS

The facts of this case are taken from the Second District Court of Appeal’s 

opinion:

[John] Sebo purchased [a Naples, Florida] home in April 2005, 

when it was four years old. [American Home Assurance Company 

(AHAC)] provided homeowners insurance as of the date of the 

purchase. The policy, which insured against “all risks,” was issued 

through a private client group and was referred to as a manuscript 

policy. It was not a standard form but instead was created specifically 

for the Sebo residence. The house and other permanent structures 

were insured for over $8,000,000. The policy also provided 

additional coverage for loss of use of the home.

Shortly after Sebo bought the residence, water began to intrude 

during rainstorms. Major water leaks were reported to Sebo’s 

property manager as early as May 31, 2005. She prepared a list of 

problems: leaks in the main house at the foyer, the living room, dining 

room, piano room, exercise room, master bathroom, and upstairs 

bathroom. By June 22, 2005, the property manager advised Sebo of 

these leaks in writing. It became clear that the house suffered from 

major design and construction defects. After an August rain, paint 

along the windows just fell off the wall. In October 2005, Hurricane 

Wilma struck Naples and further damaged the Sebo residence.

Sebo did not report the water intrusion and other damages to 

AHAC until December 30, 2005. AHAC investigated the claim, and 

in April 2006 it denied coverage for most of the claimed losses. The 

policy provided $50,000 in coverage for mold, and AHAC tendered 

that amount to Sebo but stated that “the balance of the damages to the 

house, including any window, door, and other repairs, is not covered.” 

In May 2008, Sebo renewed his claim and sent more information 

about the damages to AHAC, but AHAC again denied the claim 

except for the $50,000 in mold damages.

The residence could not be repaired and was eventually 

demolished. In January 2007, Sebo filed suit against a number of 

defendants, including the sellers of the property, the architect who 

designed the residence, and the construction company that built it. He 

alleged that the home had been negligently designed and constructed 

and that the sellers had fraudulently failed to disclose the defects in 
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the property. Sebo eventually amended his complaint in November 

2009, adding AHAC as a defendant and seeking a declaration that the 

policy provided coverage for his damages. After Sebo settled his 

claims against a majority of all other defendants, the trial proceeded 

only on his declaratory action against AHAC. The jurors found in 

favor of Sebo, and the court eventually entered judgment against 

AHAC.

Sebo, 141 So. 3d at 196-97.

On appeal, the Second District found that “[t]here is no dispute in this case 

that there was more than one cause of the loss, including defective construction, 

rain, and wind.” Id. at 197. However, the court disagreed with the trial court’s 

application of Wallach, 527 So. 2d 1386, and, in fact, disagreed with the Third 

District’s “determination that the concurrent causation doctrine should be applied 

in a case involving multiple perils and a first-party insurance policy.” Sebo, 141 

So. 3d at 198. The court reversed and remanded for a new trial, “in which the 

causation of Sebo’s loss is examined under the efficient proximate cause theory.” 

Id. at 201.

Standard of Review

The issue presented is whether coverage exists under Sebo’s all-risk policy 

when multiple perils combined to create a loss and at least one of the perils is 

excluded by the terms of the policy. To answer this question, this Court must 

determine the proper theory of recovery to apply, which is a pure question of law. 
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Therefore, the review is de novo. Fayad v. Clarendon Nat’l Ins. Co., 899 So. 2d 

1082, 1085 (Fla. 2005).

Additionally, the policy at issue in this case is an all-risk policy. We have

stated that “[a]lthough the term ‘all-risk’ is afforded a broad, comprehensive 

meaning, an ‘all-risk’ policy is not an ‘all loss’ policy, and this does not extend 

coverage for every conceivable loss.” Id. at 1086 (citation omitted). Insurance 

contracts are construed in accordance with the plain language of the policy. Id.

(citing Auto-Owners Ins. Co. v. Anderson, 756 So. 2d 29, 33 (Fla. 2000)). 

However, if the language is susceptible to more than one reasonable interpretation 

and is therefore ambiguous, the policy will be strictly construed against the insurer 

and in favor of the insured. Id. “[A]mbiguous ‘exclusionary clauses are construed 

even more strictly against the insurer than coverage clauses.’ ” Id. (quoting 

Anderson, 756 So. 2d at 34). In short, in all-risk policies such as the one held by 

Sebo, construction is governed by the language of the exclusionary provisions.

DISCUSSION

We are confronted with determining the appropriate theory of recovery to 

apply when two or more perils converge to cause a loss and at least one of the 

perils is excluded from an insurance policy. When addressing this question, courts 

have developed competing theories on how to determine coverage: the efficient 

proximate cause and concurring cause doctrines. To begin our analysis, we first 
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explain these doctrines. Then we discuss the Second District’s decision below. 

We conclude that when independent perils converge and no single cause can be 

considered the sole or proximate cause, it is appropriate to apply the concurring 

cause doctrine. Accordingly, we quash the decision below.

Efficient Proximate Cause (EPC)

The EPC provides that where there is a concurrence of different perils, the 

efficient cause—the one that set the other in motion—is the cause to which the loss 

is attributable. Sabella v. Nat’l Union Fire Ins. Co., 377 P.2d 889, 892 (Cal. 1963); 

Fire Ass’n of Phila. v. Evansville Brewing Ass’n, 75 So. 196 (Fla. 1917).

We applied the EPC in Evansville Brewing, where the coverage at issue 

provided under an all-loss fire policy excluded loss caused by an explosion. We 

explained, “[w]hile the insurer is not liable for a loss caused by an explosion which 

was not produced by a preceding fire, yet if the explosion is caused by fire during 

its progress in the building, the fire is the proximate cause of the loss, the explosion 

being a mere incident of the fire, and the insurer is liable.” Evansville Brewing, 75 

So. at 198. In Evansville Brewing, we contemplated a chain of events where one 

peril directly led to a subsequent peril. In finding that coverage existed under the 

policy, we drew the distinction between a covered peril setting into motion an 

uncovered peril and an uncovered peril setting into motion a covered peril. 

Coverage exists for the former but not the latter.
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The EPC was explained by the California Supreme Court1in Sabella, where 

it reasoned, “ ‘in determining whether a loss is within an exception in a policy, 

where there is a concurrence of different causes, the efficient cause—the one that 

sets others in motion—is the cause to which the loss is to be attributed, though the 

other causes may follow it, and operate more immediately in producing the 

disaster.’ ” Sabella, 377 P.2d at 895 (quoting 6 George J. Couch, Cyclopedia of 

Insurance Law § 1466, at 5303-04 (1930)). The California Supreme Court thus

reasoned that a covered peril that convenes with an uncovered peril may still 

provide for coverage under a policy when the covered peril triggered the events 

that eventually led to the loss.

Concurrent Cause Doctrine (CCD)

The CCD provides that coverage may exist where an insured risk constitutes 

a concurrent cause of the loss even when it is not the prime or efficient cause. See

Wallach, 527 So. 2d 1386; State Farm Mut. Auto. Ins. Co. v. Partridge, 514 P.2d 

123, 133 (Cal. 1973).

The CCD originated with the California Supreme Court’s decision in 

Partridge, where the court was presented with “a somewhat novel question of 

insurance coverage: when two negligent acts of an insured—one auto-related and 

 

1. We mention California caselaw because Florida courts have looked to 

California decisions on insurance matters involving the EPC.
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the other non-auto-related—constitute concurrent causes of an accident, is the 

insured covered under both his homeowner’s policy and his automobile liability 

policy, or is coverage limited to the automobile policy?” Id. at 124-25. The 

insured, Wayne Partridge, owned a .357 Magnum pistol and had filed the trigger 

mechanism to create “hair trigger action.” Id. at 125. Partridge was driving two 

friends, Vanida Neilson and Ray Albertson, in his insured Ford Bronco when he 

spotted a jack rabbit. In pursuit of the rabbit, he drove the Bronco off the road and 

hit a bump, causing the pistol to discharge. A bullet entered Neilson’s arm, 

penetrated her spinal cord, and left her paralyzed. Id. Neilson filed an action 

against Partridge and entered into settlement discussions with State Farm. This 

dispute arose because the parties did not agree whether recovery was available 

from both the homeowner’s and automobile policies. The homeowner’s policy 

contained an exclusion for bodily injury arising out of the use of any motor 

vehicle. Id. at 126. State Farm relied on this exclusionary language to argue that 

only the automobile policy provided coverage for the injuries. Specifically, State 

Farm argued that the language of the policies was intended to be mutually 

exclusive and not provide for overlapping coverage. Id. at 128.

The California Supreme Court disagreed. First, the court noted that 

exclusionary clauses are more strictly construed than coverage clauses. Next, the 

court reasoned that an insured risk combined with an excluded risk to produce the 
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ultimate injury and determined “that coverage under a liability insurance policy is 

equally available to an insured whenever an insured risk constitutes simply a

concurrent proximate cause of the injuries.” Id. at 130 (applying the rationale of 

Brooks v. Metro. Life Ins. Co., 163 P.2d 689 (Cal. 1945)). Thus, because neither 

peril could have created the loss alone but instead combined to create the loss, the 

California Supreme Court could not identify the prime, moving, or efficient cause 

in order to determine coverage, and pronounced a new doctrine.

The CCD was first applied in Florida in Wallach, where the Third District 

considered the coverage available to the Rosenbergs after Wallach’s sea wall 

collapsed and led to a portion of the Rosenbergs’ sea wall crumbling. 527 So. 2d 

1386. The Rosenbergs filed suit against Wallach, claiming that he had breached 

his duty to maintain his premises. They also filed a claim under their all-risk 

homeowner’s policy, which was denied because the policy contained an exclusion 

for loss resulting from earth movement or water damage. Id. at 1387. On appeal, 

the insurance company argued “that where concurrent causes join to produce a loss 

and one of the causes is a risk excluded under the policy, then no coverage is 

available to the insured.” Id. The Third District rejected that theory and adopted 

“what we think is a better view—that the jury may find coverage where an insured 

risk constitutes a concurrent cause of the loss even where ‘the insured risk [is] 

not . . . the prime or efficient cause of the accident.’ ” Id. at 1387 (quoting 11 
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Ronald A. Anderson, Couch on Insurance 2d § 44:268, at 417 (rev. ed. 1982)). 

Further, the Third District noted that the California Supreme Court found the 

efficient cause language of Sabella “to be of little assistance in cases where both 

causes of the harm are independent of each other.” Id. at 1388 (“We agree with the 

California court that the efficient cause language set forth in Sabella and cited by 

[Phelps] offers little analytical support where it can be said that but for the joinder 

of two independent causes the loss would not have occurred.” (citing Partridge, 

514 P.2d at 130 n.10)). Accordingly, the Third District held that “[w]here weather 

perils combine with human negligence to cause a loss, it seems logical and 

reasonable to find the loss covered by an all-risk policy even if one of the causes is 

excluded from coverage.” Id. (citing Safeco Ins. Co. v. Guyton, 692 F.2d 551 (9th 

Cir. 1982)). Wallach has continued to be applied in Florida courts until the Second 

District’s decision in Sebo. We accepted jurisdiction based on the conflict between 

Wallach and Sebo.

This Case

After determining that there was “no dispute in this case that there was more 

than one cause of the loss, including defective construction, rain, and wind,” the 

Second District noted below that the parties had filed cross-motions for summary 

judgment, in which Sebo had asserted that AHAC was required to cover all losses 

under the concurrent cause doctrine. Sebo, 141 So. 3d at 197. Then, the court 
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expressed its disagreement with Wallach’s application to cases involving multiple 

perils and a first-party insurance policy.2 Id. at 198. Relying on the California 

Supreme Court’s clarification in Garvey v. State Farm Fire & Cas. Co., 770 P.2d 

704 (Cal. 1989), the Second District reasoned that “a covered peril can usually be 

found somewhere in the chain of causation, and to apply the concurrent causation 

analysis would effectively nullify all exclusions in an all-risk policy.” Sebo, 141 

So. 3d at 201 (citing Garvey, 770 P. 2d at 705). Accordingly, the Second District 

reversed and remanded the case for a new trial. Id.

To determine whether coverage exists under Sebo’s policy, we begin with 

the language of the policy. It is undisputed that Sebo’s all-risk policy included the 

following exclusion:

The following exclusions apply to the Part II-PROPERTY 

section of your policy

. . . .

8. Faulty, Inadequate or Defective Planning

We do not cover any loss caused by faulty, inadequate or defective:

 

2. We note that the abrogation of the CCD was not properly before the 

Second District to consider. AHAC never specifically argued that the CCD should 

be abrogated and replaced with the EPC in Florida trial or in its brief on appeal to 

the Second District. In its order granting partial summary judgment for Sebo, the 

trial court found that “Florida recognizes the Doctrine of Concurrent Causation” 

and that the doctrine “applies to all-risk policies.” The trial court further found that 

the causes of loss “are not ‘dependent’ as that term is understood under” the 

doctrine. After this adverse ruling, it does not appear that AHAC raised the issue 

again. Likewise, the focus of AHAC’s argument on appeal to the Second District 

was the improper application of the CCD based on the dependent nature of the 

perils. Accordingly, the argument was not preserved, and the Second District 

improperly decided an issue that was not raised.
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a. Planning, zoning, development, surveying, siting;

b. Design, specifications, workmanship, repair, construction, 

renovation, remodeling, grading, compaction;

c. Materials used in repair, construction, renovation or 

remodeling; or

d. Maintenance;

of part or all of any property whether on or off the residence.

Policy, Part II – Property, D. Exclusions, 8., Page 8.

Also not in dispute is that the rainwater and hurricane winds combined with 

the defective construction to cause the damage to Sebo’s property. As in Partridge, 

there is no reasonable way to distinguish the proximate cause of Sebo’s property 

loss—the rain and construction defects acted in concert to create the destruction of 

Sebo’s home. As such, it would not be feasible to apply the EPC doctrine because 

no efficient cause can be determined. As stated in Wallach, “[w]here weather 

perils combine with human negligence to cause a loss, it seems logical and 

reasonable to find the loss covered by an all-risk policy even if one of the causes is 

excluded from coverage.” Wallach, 527 So. 2d at 1388. Furthermore, we disagree 

with the Second District’s statement that the CCD nullifies all exclusionary 

language and note that AHAC explicitly wrote other sections of Sebo’s policy to 

avoid applying the CCD. Because AHAC did not explicitly avoid applying the 

CCD, we find that the plain language of the policy does not preclude recovery in 

this case.
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Last, AHAC argues that the trial court erred by prohibiting the introduction 

of the amount of the settlements Sebo received in connection with this case. The 

trial court excluded evidence of the settlements based on this Court’s decision in 

Saleeby v. Rocky Elson Construction, Inc., 3 So. 3d 1078 (Fla. 2009). The Second 

District did not rule on this issue because “it is not completely clear whether this is 

a valued policy law case.” Sebo, 141 So. 3d at 203. The court therefore left this 

question to be resolved at retrial, noting that the 2005 version of the statute 

applied. Id. We disagree with the trial court’s determination that Saleeby

precluded AHAC from presenting the settlement amounts to offset the judgment.

Saleeby held that section 768.041, Florida Statutes, which bars disclosure to 

the jury of settlement or dismissal of a joint tortfeasor, and section 90.408, which 

bars the disclosure of evidence of an offer to compromise to prove liability, are 

clear and unambiguous. We held that “[n]o evidence of settlement is admissible at 

trial on the issue of liability.” Saleeby, 3 So. 3d at 1083. Nothing in our decision 

affects the ability of a trial court to consider the amount of settlements as a postjudgment offset. We remand for reconsideration of this issue.

For the foregoing reasons, we quash the Second District’s opinion below and 

remand for further proceedings consistent with this opinion.

It is so ordered.
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LABARGA, C.J., and PARIENTE, LEWIS, and QUINCE, JJ., concur.

CANADY, J., concurs in result.

POLSTON, J., dissents with an opinion.

NOT FINAL UNTIL TIME EXPIRES TO FILE REHEARING MOTION, AND 

IF FILED, DETERMINED.

POLSTON, J., dissenting.

As the majority explains in footnote 2, the issue decided by the Second 

District and then by this Court, whether to apply the efficient proximate cause 

doctrine instead of the concurring cause doctrine, was not raised by the parties 

before the trial court or the Second District. Accordingly, the Second District 

should not have decided this issue. See Pagan v. State, 29 So. 3d 938, 957 (Fla.

2009) (stating that the “purpose of an appellate brief is to present arguments in 

support of the points on appeal” and failing to do so will mean that such claims are 

“deemed to have been waived” (quoting Duest v. Dugger, 555 So. 2d 849, 852 

(Fla.1990))); City of Miami v. Steckloff, 111 So. 2d 446, 447 (Fla. 1959) (“An 

assigned error will be deemed to have been abandoned when it is completely 

omitted from the [appellate] briefs.”); see also Robertson v. State, 829 So. 2d 901, 

906 (Fla. 2002) (“[G]enerally, if a claim is not raised in the trial court, it will not 

be considered on appeal.” (quoting Dade Cty. Sch. Bd. v. Radio Station WQBA, 

731 So. 2d 638, 644 (Fla. 1999))). Therefore, I would quash and remand for the 

Second District to consider the issue raised by the parties, and I would not reach 

the merits of the issue decided by this Court.
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I respectfully dissent. 

Application for Review of the Decision of the District Court of Appeal – Direct 

Conflict of Decisions 

Second District - Case No. 2D11-4063

(Collier County)

Edward K. Cheffy, David Allan Zulian, and Debbie Sines Crockett of Cheffy 

Passidomo, P.A., Naples, Florida; and Mark Andrew Boyle, Geoffrey Henry 

Gentile, Michael Wade Leonard, Amanda Kaye Anderson, Molly Ann Chafe

Brockmeyer, Justin Michael Thomas, and Thomas Patrick Rechtin of Boyle, 

Gentile & Leonard, P.A., Fort Myers, Florida,

for Petitioner

Anthony J. Russo, Scott J. Frank, Christopher M. Ramey, and Ezequiel Lugo of 

Butler Weihmuller Katz Craig LLP, Tampa, Florida; Janet L. Brown and Susan B. 

Harwood of Boehm, Brown, Harwood, P.A., Maitland, Florida; and Raoul G. 

Cantero, III, David P. Draigh, and Ryan Andrew Ulloa of White & Case LLP, 

Miami, Florida,

for Respondent

Richard Hugh Lumpkin and Benjamin C. Hassebrock of Ver Ploeg & Lumpkin, 

P.A., Miami, Florida; and George Alexander Vaka and Nancy Ann Lauten of Vaka 

Law Group, P.L., Tampa, Florida,

for Amicus Curiae United Policyholders

Michael Jerome Higer and Colleen Alexis Maranges of Higer Lichter & Givner, 

LLP, Aventura, Florida,

for Amicus Curiae The Florida Association of Public Insurance Adjusters

James Andrew McKee, Thomas Joseph Maida, and Benjamin James Grossman of 

Foley & Lardner LLP, Tallahassee, Florida,
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for Amici Curiae Florida Insurance Council, Property Casualty Insurance 

Association of America, National Association of Mutual Insurance 

Companies, and American Insurance Association