Evidencing once again that Florida is a fact-based Bad-Faith jurisdiction, Florida's Second District Court of Appeal reversed a Summary Judgment entered by a Trial Court in favor of a Liability Insurance Company in a Bad Faith Failure to Settle Case. Download Gutierrez v. Yochim (Fla. 2d DCA Opinion Filed November 13, 2009). The case involved several fact questions, said the Second District, including whether the Liability Insurer in that case had enough information early on to tender its $10,000.00 Policy Limits, or whether it was reasonable for it to insist on more medical information beyond the information it already had in a case of catastrophic injuries and clear liability, among other fact issues.
In addition, the possible absence of "a formal offer to settle the case," Download Gutierrez v. Yochim (Fla. 2d DCA Opinion Filed November 13, 2009), attached Official Slipsheet Opinion at 9, has not stopped Florida Courts in the past 20 years from requiring in appropriate cases that the Liability Insurance Company 'initiate settlement negotiations' even if the injured claimant-Plaintiff does not make a settlement offer or demand. This was the holding nearly 20 years ago in the Powell v. Prudential Property & Casualty Insurance Co. case relied on in this case just decided by the Second District:
Finally, Dairyland argues that summary judgment was appropriate because there was never a formal offer to settle the case. Under the facts presented, a lack of a formal offer to settle is a factor to be considered in determining whether the insurance company acted in bad faith. See Powell v. Prudential Prop. & Cas. Ins. Co., 584 So. 2d 12, 14 (Fla. 3d DCA 1991).
Id.
The holdings in the Powell case and similar cases are discussed at length in Dennis J. Wall, "Litigation and Prevention of Insurer Bad Faith" ยง 3:13, "Duty to Make Settlement Offer" (Shepard's/McGraw-Hill, 2009 Supplement West Publishing Company).
Please Read The Disclaimer.
Comments