Some Important Considerations.....
"However, actions have consequences." Download United Automobile Insurance Co. v. A 1st Choice Healthcare Sys's, Inc. (Fla. 3d DCA Opinion Filed November 4, 2009), at 6. In a newly released decision, a Florida Appellate Court examined the extracontractual and "Bad Faith" consequences that can be included for allegedly overdue payments under Florida Statute Section 627.736(4).
The Florida Appellate Court reasoned, first, that Interest is available by Florida Statute, and possibly Attorney's Fees, in a case which involves an overdue payment under the Florida Personal Injury Protection Statute, Section 627.736. Pleading and proof of such an overdue payment, under Florida law, entitles the insured "by law to an award of interest on the overdue payment and potentially an award of attorney fees for non-payment if counsel is involved." Download United Automobile Insurance Co. v. A 1st Choice Healthcare Sys's, Inc. (Fla. 3d DCA Opinion Filed November 4, 2009), at 6-7.
"Furthermore," said the Court in this recent decision, the Florida Legislature has activated another potential "cost--and indeed, ever increasing risk" to PIP Carriers in Florida, in cases involving overdue PIP payments. The potential, additional cost that this Florida Appellate Court had in mind, goes beyond Pre-Judgment Interest, which the Court observed, is "the only sanction imposed by law on most other debtors who fail to pay a debt". Download United Automobile Insurance Co. v. A 1st Choice Healthcare Sys's, Inc. (Fla. 3d DCA Opinion Filed November 4, 2009), at 7 n.1.
The potential, additional cost in question may be incurred by "an insurer who does not act 'fairly and honestly toward its insured' in the settlement of properly submitted personal injury protection benefits claims [and therefore] may be subject to a statutory first-party bad faith action with all of its attendant consequences.... This is the manner in which the legislature has chosen to regulate insurers in matters of this type." Download United Automobile Insurance Co. v. A 1st Choice Healthcare Sys's, Inc. (Fla. 3d DCA Opinion Filed November 4, 2009), at 7.
The Florida Appellate Court refused to imply a private or statutory cause of action under the Florida PIP Statute for the allegedly overdue PIP payment in that case, in pertinent part. Cases involving Statutory First-Party Bad Faith causes of action, Florida Statute Section 627.736, and Pre-Judgment Interest, respectively, are discussed in Dennis J. Wall, "Litigation and Prevention of Insurer Bad Faith" ยงยง 9:14, 9:26, and 13:11 (Second Edition Shepard's/McGraw-Hill, 2009 Supplement West Publishing Company).
Florida's Insurance and other Statutes, and Florida Office of Insurance (Department of Insurance) Regulations, are made available through links at www.dennisjwall.com.
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