Safeco Insurance Co. of Illinois v. Rader
132 So. 3d 941
| Fla. Dist. Ct. App. | 2014Background
- Respondent was injured in a car accident, settled with the tortfeasor for $25,000 (with Safeco’s consent and waiver of subrogation), and sued Safeco for underinsured motorist (UM) benefits under a $100,000 policy.
- Safeco tendered the $100,000 policy limits, mailed a check, and in its answer asserted that tender operated as a confession of judgment and sought entry of judgment for policy limits.
- Nine days after Safeco’s answer, Respondent moved to amend his complaint to add a bad-faith claim based on Safeco’s handling; Safeco opposed, arguing bad-faith is a separate claim and premature absent a final UM judgment.
- The trial court allowed the amendment but indicated the UM claim could be resolved by a partial (policy-limits) judgment that would not be final, and permitted discovery and trial on the bad-faith claim, with a single final judgment to follow.
- Safeco removed to federal court (removal denied as untimely) and sought certiorari review in the state appellate court of the trial court’s order denying entry of final judgment and allowing amendment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether certiorari relief is warranted for denial of final judgment/allowing amendment | Safeco: order causes irreparable harm (loss or delay of federal removal rights) and departs from law by refusing to enter final judgment after confession | Respondent: no irreparable harm; bad-faith claim ripened and may be litigated in same action; trial court followed established practice | Denied: no irreparable harm shown; any removal right delayed not permanently lost; no departure from essential requirements of law |
| Whether trial court must enter final judgment after insurer confesses to policy limits | Safeco: confession leaves no further judicial work; court must enter final judgment on UM count | Respondent: court can permit amendment/abatement and retain jurisdiction to resolve bad-faith claim before final judgment | Court: confession does not automatically foreclose amendment; court may enter partial judgment and proceed with bad-faith claim so long as procedures respected |
| Whether adding a bad-faith claim defeats insurer’s removal rights permanently (irremediable harm) | Safeco: joinder/amendment prevented timely removal, causing irreparable loss of federal forum | Respondent: insurer could bring separate action later; removal right not permanently lost here | Court: insurer failed to show permanent deprivation; any delay is not irreparable under controlling precedent |
| Whether allowing amendment forced insurer to defend both UM and bad-faith simultaneously | Safeco: permitting amendment compelled simultaneous defense and premature discovery | Respondent: court structured proceedings to avoid simultaneous UM trial; bad-faith discovery appropriate once claim ripened | Court: no improper forcing of simultaneous defense; managing order consistent with precedent |
Key Cases Cited
- Lacaretta Restaurant v. Zepeda, 115 So.3d 1091 (Fla. 1st DCA) (certiorari standards; irreparable harm requirement)
- Rodriguez v. Miami-Dade County, 117 So.3d 400 (Fla. 2013) (irreparable harm is threshold jurisdictional inquiry for certiorari)
- Sunrise Mills (MLP) Ltd. P’ship v. Adams, 688 So.2d 464 (Fla. 4th DCA 1997) (denial of a procedure that permanently defeats federal removal can justify certiorari)
- GEICO Gen. Ins. Co. v. Harvey, 109 So.3d 236 (Fla. 4th DCA 2013) (certiorari granted where denial of severance/removal rights deemed to defeat statutory removal)
- Beazley Ins. Co. v. Banerjee, 123 So.3d 1184 (Fla. 4th DCA 2013) (certiorari may be appropriate when a ruling defeats ability to remove to federal court)
- Jaye v. Royal Saxon, Inc., 720 So.2d 214 (Fla. 1998) (requiring preliminary proceedings does not necessarily cause irreparable harm from disclosure of trial strategy)
- Safeco Ins. Co. of Ill. v. Fridman, 117 So.3d 16 (Fla. 5th DCA 2013) (distinguishable—trial court there erred by forcing UM jury trial after insurer tendered policy limits and by entering final judgment while reserving amendment)
- State Farm Mut. Auto. Ins. Co. v. Tranchese, 49 So.3d 809 (Fla. 4th DCA 2010) (bad-faith claim premature absent final determination of coverage/damages)
- Lime Bay Condo., Inc. v. State Farm Fla. Ins. Co., 94 So.3d 698 (Fla. 4th DCA 2012) (premature bad-faith claims should be abated or dismissed without prejudice)