... Under Florida Statute Section 624.155, Florida's "Bad Faith Statute".
In a recent decision, a Federal Court applying Florida Statute Section 624.155 held that it was enough to state a claim of First-Party Bad Faith Failure to Settle under the statute, for the Plaintiff Condominium Association to allege the fact of a Directors and Officers Liability Insurance Policy, together with the fact of a claim under that policy, and the Defendant Insurance Company's alleged failure to settle that claim in Good Faith:
The complaint does assert that Destiny Springs submitted a directors and officers negligence claim to Praetorian, which denied coverage (Doc. 2 at 7), and alleges that Praetorian "did not attempt to settle the instant claim in good faith," in violation of Fla. Stat. ยง 624.155 (Doc. 2 at 10.) That is sufficient to avoid dismissal.
Download Destiny Springs Condominium Ass'n v. Praetorian Specialty Insurance Co. (M.D. Fla. Opinion Filed March 29, 2010), also published as Destiny Springs Condominium Association v. Praetorian Specialty Insurance Co., 2010 WL 1257657 *1 (M.D. Fla. March 29, 2010)(Presnell, United States District Judge)(Westlaw subscription required to access Westlaw).
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