In American Vehicle Insurance Co. v. Goheagan, Download American Vehicle Insurance Co. v. Goheagan (Fla. 4th DCA Case No. 4D09.3222, Opinion Filed May 26, 2010) also published as 2010 WL 2076989 (Fla. 4th DCA May 26, 2010)(Westlaw subscription required to access Westlaw), it was held that in a case presenting venue issues, as a matter of Florida law a complaint "alleging bad faith in [a liability insurance company's] handling of the Estate's [third-party] claim" contained allegations of a contract cause of action. The Florida Appellate Court's announced basis for its decision was broader than venue, however:
In Florida a bad faith claim is an action ex contractu.
American Vehicle Insurance Co., 2010 WL 2076989 at *2. "AVIC's breach of its contractual obligation occurred when it allegedly failed to exercise its duties of good faith; its duties should have been performed in Palm Beach County." Id. at *4. (Note: As of the time that this post is written, the American Vehicle Insurance Co. opinion is still subject to a motion for rehearing or for clarification, if any.)
The Florida Appellate Court held that the Defendant liability insurance company's duties of Good Faith and Fair Dealing should, in this case, have taken place in Palm Beach County, Florida if they should have taken place anywhere, in basic terms. The Court provided a clear and concise review of many facts relevant to appropriate venue for a claim of alleged Bad Faith in Settlement in Florida:
These duties included making a settlement offer and/or tendering the policy limits to the Estate, which was opened in Palm Beach County; investigating and evaluating the claim, when the accident occurred in Palm Beach County; and advising and warning Perkins [AVIC's insured], who resided in Palm Beach County, of possible outcomes, risks, and consequences. Although the physical location of the adjuster was in Broward County, the totality of the circumstances support venue being proper in Palm Beach County.
Id.
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