GEICO General Insurance Co. v. Harvey
208 So. 3d 810
| Fla. Dist. Ct. App. | 2017Background
- On Aug. 8, 2006 James Harvey (insured) caused a car crash that killed John Potts; GEICO provided $100,000 liability coverage.
- GEICO tendered the full $100,000 policy limits to the decedent’s estate nine days after the accident without any condition or demand.
- The estate’s lawyer requested a financial statement from the insured to learn about other assets/coverage; the estate never gave a deadline nor said the statement was required to settle.
- GEICO notified the insured of the estate’s request on Aug. 31 and provided a sample affidavit; the insured had gathered relevant financial documentation and his counsel became available before suit was filed but the insured did not provide the statement.
- The estate filed suit on Sept. 13, returned GEICO’s check, and later obtained an $8.47 million judgment against the insured.
- The insured sued GEICO for bad faith; at trial a jury found for the insured, but GEICO appealed the denial of a directed verdict and judgment notwithstanding the verdict.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether evidence supported a bad faith verdict against insurer for failing to settle | Harvey: GEICO delayed informing him of estate’s statement request and mishandled claims handling, causing excess judgment | GEICO: Tendered limits quickly, informed insured, and any procedural lapses were at most negligence and did not cause the excess judgment | Reversed: as a matter of law GEICO did not act in bad faith and its conduct did not cause the excess judgment |
Key Cases Cited
- Boston Old Colony Ins. Co. v. Gutierrez, 386 So.2d 783 (Fla. 1980) (sets insurer duties to insured in defense/settlement decisions)
- Berges v. Infinity Ins. Co., 896 So.2d 665 (Fla. 2004) (bad-faith analysis requires totality of the circumstances)
- DeLaune v. Liberty Mut. Ins. Co., 314 So.2d 601 (Fla. 4th DCA 1975) (negligence alone insufficient for bad faith)
- Macola v. Gov’t Emps. Ins. Co., 953 So.2d 451 (Fla. 2006) (insurer must not put its interests ahead of insured’s)
- Campbell v. Gov’t Emps. Ins. Co., 306 So.2d 525 (Fla. 1975) (standard in excess-judgment cases is bad faith, not negligence)
- Perera v. U.S. Fid. & Guar. Co., 35 So.3d 893 (Fla. 2010) (insurer’s bad faith must have caused the excess judgment)