FUGERSON v. TRAVELERS PROPERTY CASUALTY COMPANY OF AMERICA
4:24-cv-00156
M.D. Ga.May 22, 2025Background
- Plaintiff Quinton Fugerson, injured in a 2017 car accident in Georgia, held underinsured motorist (UM) coverage in a Travelers insurance policy issued in Florida.
- Fugerson first recovered $100,000 from the at-fault driver’s insurer, then settled his workers' compensation claim for $150,000 (with allocations for fees and child support).
- After Travelers refused Fugerson’s UM settlement demand, a jury awarded Fugerson $600,000 in damages in a related action.
- Fugerson sued Travelers in Georgia state court (later removed to federal court), alleging breach of contract and statutory bad-faith under Florida law (Fla. Stat. § 624.155).
- Travelers moved to dismiss the bad-faith claim and argued for setoffs based on prior payments; parties filed cross-motions for partial summary judgment on these setoff issues.
- The case was decided on motions without resolving discovery regarding duplicative medical payments.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does Fla. Stat. § 624.155 require an excess judgment for first-party bad faith? | No excess judgment required; statute's plain text controls. | Yes, excess judgment (or equivalent) required by analogy. | No excess judgment required for first-party bad faith. |
| Sufficiency of civil remedy notice under § 624.155(3) | Notice adequate and in good faith. | Notice fails to identify a bad faith act causing damages. | Notice sufficient; dismissal improper. |
| Setoff for past medical expenses paid by workers’ compensation | Travelers didn't prove amounts are duplicative; discovery needed. | All past medical payments duplicative, full offset due. | No summary judgment—factual dispute, discovery required. |
| Setoff for lump-sum workers’ compensation settlement | No offset; settlement not for past/future medical expenses. | Full offset justified, as lump sum likely duplicative. | No offset allowed—settlement lawfully not for medical. |
Key Cases Cited
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (plausibility standard for dismissal motions)
- Ashcroft v. Iqbal, 556 U.S. 662 (framework for considering pleadings on a motion to dismiss)
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (summary judgment standard)
- Celotex Corp. v. Catrett, 477 U.S. 317 (burdens on summary judgment)
- Perera v. U.S. Fidelity & Guar. Co., 35 So.3d 893 (excess judgment requirement for third-party bad faith claims under Florida law)
- Scheuer v. Rhodes, 416 U.S. 232 (standard for determining sufficiency of pleadings)