Landmark American Insurance v. Studio Imports, Ltd.
76 So. 3d 963
Fla. Dist. Ct. App.2011Background
- Landmark insured Studio for commercial property, personal property, and business income under a contract.
- October 2005 hurricane Wilma caused property damage and business income loss to Studio.
- Studio claimed Landmark took an exceedingly long time to reimburse, causing additional damages including goodwill and banking relationships loss.
- Studio filed a six-count complaint alleging breach of contract and statutory bad faith under section 624.155, Fla. Stat.
- Trial court dismissed four counts, leaving only breach of contract and bad faith to be tried together; Landmark appeals.
- Appellate court holds bad faith claim must be abated or dismissed before underlying merits are resolved.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Should the bad faith claim be abated or dismissed first? | Studio argues both claims can proceed concurrently. | Landmark argues bad faith should not proceed until liability/coverage are resolved. | Bad faith claim should be abated or dismissed without prejudice until underlying breach is resolved. |
Key Cases Cited
- State Farm Mut. Auto. Ins. Co. v. Tranchese, 49 So.3d 809 (Fla. 4th DCA 2010) (certiorari proper to abate bad-faith action until coverage/damages determined)
- Blanchard v. State Farm Mut. Auto. Ins. Co., 575 So.2d 1289 (Fla.1991) (insurer benefits action must be resolved before bad-faith accrues)
- Vanguard Fire & Casualty Co. v. Golmon, 955 So.2d 591 (Fla.1st DCA 2006) (court may abate statutory claims to conserve judicial economy)