Florida Appellate Decisions Push Bad Faith Standard & Raise Concerns
The longstanding standard of what constitutes bad faith in Florida was determined by the Florida Supreme Court almost 40 years ago. The Court determined that an insurer has a duty to use the same degree of care and diligence as someone “of ordinary care and prudence.” Insurers must investigate the facts, give fair consideration to settlement offers and–where a reasonably prudent person would–pay total recovery. However, two recent appellate decisions have made some important changes to what constitutes a bad faith insurance claim in the context of third-party liability claims, as we discuss below. Eleventh Circuit Decision The first of those decisions—by the Eleventh Circuit—upheld a lower court decision finding that Geico deciding to offer settlement limits twenty days from the first notice of the claim was not done in good faith as a matter of law. The court ultimately upheld the jury verdict in favor of plaintiffs, finding that the jury was reasonable and had enough evidence to conclude that Geico had acted in bad faith. Florida Supreme Court Decision Two months later, the Florida Supreme Court found that there was substantial evidence to support a jury’s finding that Geico had, once again, acted in bad faith in failing to settle a claim against its insured, stating that an insurer is not absolved of liability simply because it advises its insured of the possibility of an excess judgment, the probable outcome of litigation, and settlement opportunities. According to the Court, what matters is whether the insurer “diligently” worked on the insured’s behalf to avoid excess judgment—with the same haste and precision as if it were the insured. In addition, in cases where liability is “clear” and injuries so serious that an excess judgment is likely, because the financial exposure to the insured is a “ticking financial time bomb” and a lawsuit could be filed at any moment, insurance companies must not engage in any delay in making an offer—even when there is no assurance that the claim could be settled. In this case, a significant factor—to the majority—was that Geico arguably introduced delay in failing to inform counsel of a number of things; even though it tendered policy limits within nine days of the accident; because it knew that the claimant had demanded a statement from the insured early on regarding assets and other insurance. Contact Our Florida Bad Faith Insurance Defense Attorneys Insurance companies not only have a duty to their insureds, but a duty to thoroughly investigate all claims and pay out benefits only where coverage and liability are clear. HD Law Partners represents insurance carriers in good faith disputes here in Florida, and provides the very best in defense of bad faith claims. Contact us today to find out more. Resource: images.propertycasualty360.com/contrib/content/uploads/documents/404/16977/11th-Circuit-Bannon-v.-Geico-Fla..pdf Tags: Florida Insurance Bad Faith Lawyer, Florida Insurance Bad Faith Lawyers, Tampa Insurance Defense Attorney, Tampa Insurance Defense Attorneys Posted in Insurance Bad Faith, Insurance Defense | No Comments » Connect with us Archives May 2026 April 2026 March 2026 February 2026 January 2026 December 2025 November 2025 October 2025 September 2025 July 2025 June 2025 January 2025 January 2024 December 2023 November 2023 October 2023 September 2023 August 2023 July 2023 June 2023 May 2023 April 2023 March 2023 February 2023 January 2023 December 2022 November 2022 October 2022 September 2022 August 2022 July 2022 May 2022 April 2022 March 2022 November 2021 October 2021 September 2021 August 2021 July 2021 May 2021 April 2021 March 2021 February 2021 January 2021 December 2020 November 2020 October 2020 August 2020 July 2020 June 2020 May 2020 April 2020 March 2020 February 2020 January 2020 December 2019 November 2019 October 2019 September 2019 August 2019 July 2019 June 2019 May 2019 April 2019 March 2019 February 2019 January 2019 December 2018 November 2018 October 2018 September 2018 August 2018 July 2018 June 2018 May 2018 April 2018 March 2018 February 2018 January 2018 December 2017 November 2017 October 2017 September 2017 August 2017 July 2017 June 2017 May 2017 April 2017 March 2017 February 2017 January 2017 December 2016 November 2016 October 2016 November 13 Categories Alimony Appellate Arbitration Auto Accidents Auto Insurance Business Corporate Business Insurance Law Child Custody Child Support Criminal Law Divorce Family Law FEMA Insurance Payments Florida’s Mandatory 2‑Hour Legal Professionalism CLE: Foreclosure Defense Fort Myers Hurricane Insurance Attorney General Guardianship HD Law Partners Service HOA/Property Management Homeowners Association Homeowners Insurance Hurricane Claims Hurricane Insurance Insurance Bad Faith Insurance Claims Insurance Defense Insurance Litigation Landlord Tenant Law Enforcement Liability Loan Modifications Mold Water Damage Parental Rights Paternity Personal Injury Premises Liability Law Prenuptial Agreements Private Security Property Distribution Property Owner Law Sarasota Insurance Litigation Attorney Slip Fall Tampa Business and Corporate Attorneys tampa family attorney Tampa Insurance Attorneys Timeshare Timesharing Uncategorized HD Law Partners is proud to be your trusted full-service law firm Quick Links Property & Casualty Business & Corporate Litigation Family Law Contact Us Careers Get In Touch 2002 North Lois Avenue Suite 510 Tampa, FL 33607 813-253-5333 Contact Us