Case law applying Florida's Bad Faith Statute, Section 624.155, imposes one condition precedent which flows from the Statute, but refuses to add another condition precedent that the Statute itself does not contain.
These decisions are embodied in the recent case of Hunt v. State Farm Florida Insurance Co., 2013 WL 1352471 (Fla. 2d DCA April 5, 2013). Section 624.155 has been held to offer a defense of prematurity particularly to First-Party Bad Faith Claims.
"Prematurity" is really a defense that liability and covered damages have not been favorably determined to the Policyholder. A Judgment of Breach of Contract is not the only way of obtaining a favorable resolution to satisfy the Florida Statute, however. It is settled now that an Arbitration Award which establishes the validity of the Policyholder's Coverage Claim is a satisfactory condition precedent. So it was held in State Farm Florida Insurance Co., 2013 WL 1352471 *1 (Fla. 2d DCA April 5, 2013).
In addition, there is an explicit statutory condition precedent of a Civil Remedy Notice of Insurer Violation (CRN) under the Florida Statute. One thing that the Florida Statute does not require, however, is that the CRN contain a definite "cure" amount, meaning an amount of money stated in the CRN which the Policyholder (or other complainant) contends is the amount of money due from the Insurance Company under the Insurance Contract. "On its face, the statute does not require a specific cure amount. We are hesitant to impose a requirement beyond that directed by the legislature." State Farm Florida Insurance Co., 2013 WL 1352471 *2 (Fla. 2d DCA April 5, 2013).
One condition precedent imposed, another supposed condition precedent rejected. Florida Statute Section 624.155 is interpreted by the Florida Courts and Florida lawyers in ways which may often be unknown to others.
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