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Eleventh Circuit: Jury Instruction About Notice to Insured of Settlement Demand Was Required (Florida)

Posted on July 20, 2022 by Tiffany Bustamante O'Quinn

In its recent decision, Brink v. Direct General Ins. Co., 38 F.4th 917 (11th Cir. 2022), the Eleventh Circuit ruled 2-1 that the Florida district court erred when it failed to instruct a jury that an insurer not only owed a duty to settle claims for its insured, but also owed a duty to advise its insured of settlement offers. This case arose from a vehicle incident resulting in serious injuries to the plaintiff, Dustin Brink. Brink later won over $12 million in a lawsuit against the at-fault driver, Juan Ruiz Pereles. To recover the judgment, Brink sued Pereles’ insurer, Direct General Insurance, for bad faith toward Pereles.[1] The jury returned a verdict in Direct General’s favor, but Brink argued…

Eleventh Circuit (Florida): No Bad Faith for Investigating Claim

Posted on March 1, 2022 by Evan Holober

On February 15, 2022, the United States Court of Appeal for the Eleventh Circuit upheld the Southern District of Florida’s summary judgment victory for GEICO, finding that no reasonable jury could conclude that GEICO had operated in bad faith with respect to its handling of a wrongful death claim against its insured. Ellis v. GEICO Gen. Ins. Co., No. 21-12159, 2022 WL 454176 (11th Cir. Feb. 15, 2022). This case reinforces that under Florida law, an insurer may take a reasonable time to investigate a claim, and that, absent time to investigate or a settlement demand, an insurer need not voluntarily tender policy limits. About The Author

Tagged with: Auto Insurance, bad faith, claims handling, Claims Investigation, Delay Offering Limits, Eleventh Circuit, Failure to Offer Policy Limits, Florida Bad Faith, policy limits, Summary Judgment
Posted in Bad Faith

QUITE THE SPLIT: LOUISIANA THIRD CIRCUIT COURT OF APPEAL APPLIES TEN-YEAR PRESCRIPTIVE PERIOD TO CONTRACT-BASED BAD FAITH CLAIMS

Posted on March 5, 2019 by Stephanie Villagomez Lemoine

In a surprising decision on rehearing, on February 4, 2019, a panel of the Louisiana Third Circuit Court of Appeal reversed itself and held that bad faith claims arising out of an insurance contract are subject to a ten-year prescriptive period rather than a one-year prescriptive period.[1] Fils v. Starr Indemnity & Liability Company, — so. 3d — (La. App. 3rd Cir. 5/9/2018)(on r’hrg), centered on the timeliness of the plaintiff’s bad faith claims against his uninsured motorist carrier. Dissatisfied with the $45,000 that his UM carrier had tendered following a motor vehicle accident on August 28, 2013, the policyholder filed suit against the insurer for additional benefits the day before the expiration of the two-year prescriptive period applicable to…

In Rhode Island, No Duty of Good Faith to Third Party Claimant

Posted on January 22, 2019 by Raz Barnea

In Summit Insurance Company v. Stricklett, — A.3d —, No. 2017185APPEALPC12536, 2019 WL 190358, (R.I. Jan. 15, 2019), the Supreme Court of Rhode Island held that – similar to many jurisdictions – the duty to act in a reasonable manner and in good faith settling a claim does not run to the claimant absent an assignment from the insured. The facts of Stricklett are simple. Mr. Stricklett’s vehicle was insured by Summit under a policy with a $25,000 per person, $50,000 per accident coverage limit. In 2002, Stricklett allegedly collided with eleven-year-old Scott Alves, requiring that Alves undergo medical treatment. Alves’s parents submitted the medical bill to Summit Insurance Company, who investigated the incident and determined that Stricklett was not…