City Insurance to Cover Legal Defense in Recall of Fernandina Beach Commissioners

The City of Fernandina Beach’s insurance carrier will cover legal defense costs for the recall efforts targeting Commissioners Genece Minshew and Tim Poynter, City Attorney Teresa Prince told the City Commission Tuesday night.

Prince said the determination was made earlier in the day under Florida law and Florida Supreme Court precedent, which provide that elected officials are entitled to a legal defense when a recall arises from the performance of their official duties and serves a public purpose.

“There will be coverage afforded by the city’s insurance carrier,” Prince said during the Feb. 3 commission meeting. “Under Florida law and under Florida Supreme Court cases, it has been determined that a city commissioner is subject to recall as long as it is arising out of the performance of their duty … they are to be afforded coverage for such recall for defense.”

Prince said there will be no deductible or direct cost to the city because the defense would be handled entirely through the city’s insurance policy.

The coverage determination includes a standard “reservation of rights,” meaning the insurer reserves the ability to revisit coverage if circumstances change. Prince said she has already spoken with the insurance adjuster, who has provided options for defense counsel.

Under state law, the City Commission must formally approve the appointment of insurance-provided defense attorneys. Prince said she will bring forward two resolutions at the Feb. 17 commission meeting to authorize and approve counsel for each commissioner named in the recall petitions.

As part of that approval, the commission must make a finding that the allegations contained in the recall petitions arose out of the commissioners’ official duties. Prince said she believes that legal standard has been met.

“Based on my review of the petitions, I do believe that that has been met,” she said.

Prince also cited Florida Supreme Court language addressing the broader public interest served by providing a defense in recall cases, noting that denial of legal representation could discourage public officials from carrying out their duties.

“The reason that you would be afforded defense coverage in a recall situation is that it would allow it to avoid the chilling effect that a denial of representation might have on a public official in performing their duties properly and diligently,” she said, quoting directly from court precedent.

Prince told commissioners she obtained an estimate from an outside law firm to provide an independent legal opinion on the insurance coverage question, but said she did not believe such a review was necessary. The estimate was for approximately five hours of work.

“I do not believe we need to seek an outside opinion to edify your legal opinion,” Antun said, adding that commissioners could request one if they disagreed.

The recall effort against Minshew and Poynter was launched by local activists opposed to the city’s paid parking program. Under Florida law, recall petitions become public once signature gathering begins, which occurred Saturday at the Fernandina Beach Farmers Market in historic downtown.

If recall organizers gather enough verified signatures, the matter would advance through a legally prescribed process that could ultimately place recall questions on the ballot. The legal sufficiency of recall petitions may be challenged in court, a step that often leads to protracted litigation.

The Feb. 17 commission meeting will be the first formal action by the City Commission related to the legal defense of the recall proceedings.