Florida Supreme Court: When it Comes to UM Damages Verdicts and Bad Faith, “What is Good for the Goose is Good for the Gander”
Time 2 Minute Read
Categories: Bad Faith

On Thursday, Florida’s highest court held that prior to litigating a first-party bad faith action arising from an uninsured/underinsured motorist (“UM”) case, an insured is entitled to a jury determination of liability and the full extent of potentially recoverable damages, even if in excess of policy limits.  Fridman v. Safeco Ins. Co. of Illinois, No. SC13-1607 (Fla. Feb. 25, 2016).  And, such a determination is binding on the insurer in the subsequent bad faith action so long as the parties had an opportunity for appellate review of any trial errors.

The ruling is premised on Florida’s requirement that the insured’s liability and the full extent of potential damages be determined in order to state a claim for bad faith.  Applying that rule, the Supreme Court rejected Safeco’s argument and reversed  the Fifth District Court of Appeal, finding that liability and the extent of damages need not be deferred to the subsequent bad faith case. The Court also clarified that the UM trial court may reserve jurisdiction to allow an insured to formally amend his complaint to add a claim for bad faith at the conclusion of the UM proceedings.

  • Partner

    Andrea helps companies navigate disasters and swiftly recover insurance funds to restore operations with minimal impact to the bottom line. She leads the firm’s cyber insurance practice and serves as a firmwide hiring partner.

You May Also Be Interested In

Time 7 Minute Read

As we ring in the New Year, one thing remains the same: understanding the definitions and conditions in your insurance policy is critical. In a recent decision, a Florida federal court in Ohio Security Insurance Co. v. E Kelly Enterprises Inc. et al., No. 3:22-cv-24754, held that an insurer had no duty to defend or indemnify a general contractor and no duty to indemnify a subcontractor for damages from defective work on a naval base, based on the policy’s definition of “suit,” “property damage,” and allocation requirements. The decision highlights the importance of numerous issues in the context of commercial general liability policies, including the nuances of policy definitions, obtaining insurer consent when necessary, and allocation between covered and uncovered claims.

Time 1 Minute Read

On January 15, 2025, the U.S. Department of Health and Human Services’ Office for Civil Rights  announced a settlement with a Florida health system, Memorial Healthcare System, for a violation of the HIPAA Privacy Rule.

Time 2 Minute Read

On December 3, 2024, the U.S. Department of Health and Human Services (“HHS”) Office for Civil Rights (“OCR”) announced it imposed a $1.19 million civil monetary penalty on Gulf Coast Pain Consultants, LLC d/b/a Clearway Pain Solutions Institute (“Gulf Coast Pain Consultants”) for various HIPAA Security Rule violations, including a failure to terminate former workforce members’ access to systems containing electronic protected health information (“ePHI”).

Time 1 Minute Read

Benchmark Litigation has named insurance coverage partners Andrea DeField and Geoffrey Fehling to the publication’s 40 & Under List. Benchmark Litigation is the definitive guide to America’s leading litigation firms and attorneys. The 40 & Under List honors the most notable up-and-coming litigation attorneys in the United States. Those named to the list have proven their eligibility as individuals at the partner level of their respective firms who are 40 years of age or younger.

Search

Subscribe Arrow

Recent Posts

Categories

Tags

Authors

Archives

Jump to Page