... "Implied Warranty", Then ABATE!
In Download King Cole Condominium Ass'n v. QBE Insurance Corp. (S.D. Fla. Opinion Signed June 26, 2009; Filed July 1, 2009), a Federal Judge in Florida adhered to his previous ruling on the same subject in a different case, and effectively abated a Federally fashioned Claim "for breach of the implied warranty of good faith and fair dealing":
As previously determined by the undersigned, a claim for breach of the implied warranty of good faith and fair dealing must wait until the conclusion of the litigation with respect to insurance coverage. See Isola Condominium v. QBE Insurance Corp., Case No. 08-21592-CIV-DLG at D.E. 32, 50. Therefore, Count IV, asserting a claim for breach of implied good faith and fair dealing must be dismissed without leave to amend.
Download King Cole Condominium Ass'n v. QBE Insurance Corp. (S.D. Fla. Opinion Signed June 26, 2009; Filed July 1, 2009), attached Official Slipsheet Opinion at 8.
The Southern District of Florida's efforts toward fashioning an "implied warranty of good faith and fair dealing" were posted in 2009 on Insurance Claims and Issues. Florida State Courts never recognized any common law cause of action for alleged breach of duties of Good Faith and Fair Dealing. It took the enactment of a Florida Statute, Section 624.155 popularly known as Florida's "Bad Faith Statute," before Florida recognized any claim for First-Party Bad Faith.
Abatement of Bad Faith Claims pending resolution of simultaneous Claims to Insurance Coverage is discussed by Dennis J. Wall, "Litigation and Prevention of Insurer Bad Faith" (Second Edition, Shepard's/McGraw-Hill; 2009 Supplement, West Publishing Company), in § 5:1 (Settlement Claims in Third-Party Bad Faith Cases), and in § 11:1 (First-Party Bad Faith Cases) .
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