Florida Supreme Court set to rule on case which will provide clarity on requirements for maintain a bad faith claim against an insurance company
Submitted by Jessica Gregory on 16 Mar, 2018
The Florida Supreme Court is set to issue a ruling in Harvey v. Geico General Insurance Co., case number SC17-85, which will provide clarity as to the requirements for an insured to maintain a bad faith case against its insurer.
This case arises out of a 2006 auto accident between James M. Harvey and motorcyclist, James Potts. Mr. Potts was killed as result of the accident. His estate brought a wrongful death action against Mr. Harvey. After trial, the jury awarded $8 million in damages to the estate. Mr. Harvey was insured under an automobile policy with GEICO which provided $100,000 in coverage. Mr. Harvey brought suit against GEICO alleging that GEICO’s bad faith in handling the claim resulted in the excess judgment against the insured. After the trial court denied GEICO’s motion for directed verdict as to bad faith, the jury returned a verdict in favor of the insured. GEICO appealed.
On appeal, the Fourth DCA held that the evidence was insufficient as a matter of law to show that GEICO acted in bad faith in failing to settle the claim of Mr. Potts’ estate. See GEICO Gen. Ins. Co. v. Harvey, 208 So. 3d 810, 812 (Fla. 4th DCA 2017), review granted, No. SC17-85, 2017 WL 3484290 (Fla. June 9, 2017). The Fourth DCA noted that the evidence showed that GEICO tendered the policy limits to the estate nine (9) days after the accident, notified the insured that the estate wanted a statement of his assets seventeen (17) days after the request, and that the insured failed to provide a statement to the estate despite having the opportunity to do so before suit was filed (there was no deadline for the statement given by the estate). The Fourth DCA held that GEICO fulfilled all of the obligations that an insurer owes the insured as announced in Boston Old Colony. It further held that even if GEICO could have acted more efficiently in handling the claim, its actions did not cause the excess judgment.
The insured, Mr. Harvey, sought review of the Fourth DCA’s decision from the Florida Supreme Court. The Florida Supreme Court accepted review, and oral argument was held on November 1, 2017. We are continuing to follow this case and will keep you posted on the ruling by Florida’s high court and its effect on bad faith litigation.