302 So.3d 485
Fla. Dist. Ct. App.2020Background
- Homeowners Patti Fortune and Jeremy Domin suffered Hurricane Irma damage and timely filed an insurance claim under a First Protective/Frontline policy.
- Insurer inspected and estimated net loss at $3,013.20; homeowners presented a much larger public-adjuster estimate.
- Insurer invoked the policy appraisal process on December 27, 2017; homeowners filed a Civil Remedy Notice (CRN) alleging bad faith on January 8, 2018.
- Appraisal concluded June 1, 2018 awarding $121,516.55; insurer paid the net appraisal amount on July 17, 2018 (after the 60-day CRN cure period).
- Trial court granted summary judgment for the insurer, finding that invoking appraisal before the CRN and later payment cured the alleged violations; the Second District reversed and remanded.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether invoking appraisal and then paying the award after the 60‑day CRN cure period "cures" an alleged statutory bad faith violation | Appraisal pendency does not cure alleged bad faith; insurer still had a 60‑day obligation to evaluate and, if owed, timely pay benefits | Invoking appraisal and subsequently paying the appraisal award corrected the circumstances and cured the CRN | Reversed — invocation of appraisal and payment after the 60‑day period does not, as a matter of law, cure an alleged failure to attempt to settle in good faith |
| Whether a CRN must state a specific monetary cure amount to be valid or curable | CRN need not state a specific amount; public adjuster estimate gave insurer adequate notice of claimed scope/amount | Because the CRN lacked a precise cure amount, invoking appraisal was a proper corrective step | Court: CRN need not include a specific dollar amount; insurer had the public adjuster estimate, but that does not make appraisal invocation a legal cure of the alleged bad faith |
Key Cases Cited
- Vest v. Travelers Ins. Co., 753 So. 2d 1270 (Fla. 2000) (insurer has 60 days to cure after CRN; cure by paying benefits owed when payment is due)
- Landers v. State Farm Fla. Ins. Co., 234 So. 3d 856 (Fla. 5th DCA) (insured may file CRN before appraisal concludes; appraisal is not a prerequisite to filing CRN)
- Hunt v. State Farm Fla. Ins. Co., 112 So. 3d 547 (Fla. 2d DCA 2013) (appraisal award satisfies determination of liability and damages prerequisites)
- Bryant v. GeoVera Specialty Ins. Co., 271 So. 3d 1013 (Fla. 4th DCA 2019) (appraisal timing affects when suit can be filed but does not automatically resolve bad faith)
- 316, Inc. v. Maryland Cas. Co., 625 F. Supp. 2d 1187 (N.D. Fla. 2008) (district court found no bad faith where insurer paid a large portion before appraisal, but the opinion is fact‑specific and not read broadly)
- Walters v. CSX Transp., 778 So. 2d 396 (Fla. 2d DCA 2001) (finality language can render an order appealable as a final judgment)
- Harper v. GEICO Gen. Ins. Co., 272 So. 3d 448 (Fla. 2d DCA 2019) (clarifies that the 60‑day CRN period begins when the notice is electronically filed)