Earlier this month, the Florida Supreme Court issued an opinion upholding a trial court’s ruling in favor of a plaintiff who filed a bad-faith claim against his insurance company after the insurance company initially refused to settle the plaintiff’s claim. In doing so, the court reversed the intermediate appellate court, which had held that the insurance company’s after-the-fact confession of judgment was binding against the plaintiff.
The accident giving rise to the case occurred in 2007, and involved the plaintiff and an underinsured motorist. Because the at-fault motorist was not adequately insured at the time of the accident, the plaintiff filed a claim with his own insurance company, under the “underinsured motorist” provision of the policy.
Initially, the insurance company failed to pay the claim. The plaintiff followed up, and by 2009 he had still not received a response. He then filed a bad-faith claim against the company pursuant to a state statute. The specific statute at issue allowed for an award to be issued in excess of the policy limit. However, the plaintiff still offered to settle the case for $50,000. The insurance company did not respond.