112 So. 3d 547
Fla. Dist. Ct. App.2013Background
- Hunt’s home sustained sinkhole damage in July 2006 and he filed a claim with State Farm.
- Hunt disagreed with State Farm’s damages estimate and filed a civil remedy notice (CRN) in April 2007.
- The Florida Department of Financial Services accepted the CRN on April 25, 2007, triggering a 60-day cure window.
- State Farm moved to dismiss and for appraisal; the court abated the suit and ordered appraisal.
- In October 2008, the appraisal awarded Hunt $162,571.61, which State Farm paid; Hunt later pursued a bad-faith action in 2010 after dismissing the prior suit.
- State Farm moved for summary judgment, arguing no breach-of-contract judgment and no definite cure amount in the CRN.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether appraisal satisfies favorable-resolution prerequisite | Hunt argues appraisal confirms claim validity and satisfies prerequisite. | State Farm argues breach judgment or other form required; appraisal may not suffice. | Appraisal award satisfies prerequisite; not necessary to have a breach judgment. |
| Whether a definite cure amount is required in a CRN | CRN does not require a specific cure amount under statute. | A cure amount is necessary to define the remedy and cure period. | CRN does not require a specific cure amount. |
| Whether Premature bad-faith claim was proper without a breach judgment | Premature conclusion should not bar a bad-faith action when cure period/resolve occurred. | Bad-faith action premature absent liability determination and damages. | Bad-faith action can proceed where an appraisal/arbitration resolves the claim in the insured’s favor. |
Key Cases Cited
- Blanchard v. State Farm Mut. Auto Ins. Co., 575 So.2d 1289 (Fla.1991) (bad-faith action accrues after favorable resolution of underlying action)
- Vest v. Travelers Ins. Co., 753 So.2d 1270 (Fla.2000) (CRN may precede liability/damages determinations; good-faith evaluation required)
- Trafalgar at Greenacres, Ltd. v. Zurich Am. Ins. Co., 100 So.3d 1155 (Fla.4th DCA 2012) (arbitration award can satisfy favorable-resolution condition)
- Dadeland Depot, Inc. v. St. Paul Fire & Marine Ins. Co., 945 So.2d 1216 (Fla.2006) (supports appraisal/arbitration as cure for bad-faith prerequisite)
- Talat Enterprises, Inc. v. Aetna Casualty & Surety Co., 753 So.2d 1278 (Fla.2000) (no explicit requirement for a specific CRN cure amount)