Insured Lost Job, COBRA, Case: ....

.... And Employer-Insurer Requested Bad Faith Attorney's Fees, Too.  Request DENIED by the Eleventh Circuit Court of Appeals in this recent appeal from the United States District Court for the Southern District of Florida:  Download Harris v. United Auto Insurance Group, Inc., a Florida Corporation (11th Cir. Opinion Filed August 18, 2009).

    The Plaintiff-Policyholder was an in-house Counsel for United Automobile Insurance Group, Inc.  United Auto was his Employer.  He was terminated from employment by United Auto, which later also terminated his COBRA Health Insurance Coverage.  For several reasons not addressed by the District Judge, the Eleventh Circuit affirmed an Order of Dismissal With Prejudice under Federal Rule 12(b)(6).  This aspect of the Eleventh Circuit's recent decision is discussed in a related post on Insurance Claims and Issues Web Log, www.insuranceclaimsissues.typepad.com.

    Not content with victory on the merits, the Appellee Employer did something rarely done in Appeals involving Insurance Companies, particularly in Appeals originating in Florida:  It requested fees from the Insured, arguing "that Harris acted in bad faith by filing this appeal ...."   Download Harris v. United Auto Insurance Group, Inc., a Florida Corporation (11th Cir. Opinion Filed August 18, 2009).  [Emphasis added.]  As might have been anticipated before such a motion was even filed, the Eleventh Circuit refused to assess attorney's fees against Mr. Harris in addition to affirming the Order of Dismissal With Prejudice of Mr. Harris's Complaint:

    Considering these factors, an award of fees is not warranted in this case.  First, the district court made no finding that any party acted in bad faith, and the record on appeal does not establish any bad faith.

Download Harris v. United Auto Insurance Group, Inc., a Florida Corporation (11th Cir. Opinion Filed August 18, 2009).  [Emphasis added.]

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