87 So. 3d 782
Fla. Dist. Ct. App.2011Background
- In a December 2001 collision, UAIC insured Jose Hernandez caused fatalities and injuries to Levine and Maldonado, with Levine's estate pursuing claims.
- UAIC tendered $10,000 bodily-injury limits with a broad general release and hold-harmless agreement to the Levine estate early after notice.
- UAIC later asked for multiple documents and subrogation info; the estate rejected the tender, and litigation ensued seeking bad-faith penalties under Fla. Stat. § 624.155.
- The Levine estate’s amended complaint alleged Hernandez assigned the bad-faith claim to the estate; the assignment was contested but not challenged as a standing issue.
- The trial court allowed a brief re-opening of the estate’s case for authentication and respondent testimony about the assignment; the jury ultimately returned a verdict for bad faith against UAIC, which the court affirmed on post-trial motions.
- The dissent argued the facts did not establish bad faith as a matter of law, emphasizing timely tender and lack of proportional damages.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Exclusion of Maldonado/Soto settlements | Estate argued settlements showed bad faith toward insured. | Evidence would confuse focus on Levine claim; not probative of insured's bad faith. | No abuse; exclusion was proper. |
| Assignment validity and standing | Assignment affects entitlement to attorney’s fees and supports standing. | Assignment not essential to bad-faith claim; validity for fees only. | Assignment not required for bad-faith claim; no prejudice. |
| Jury instruction burden shift | Instruction improperly shifted burden to UAIC. | Instruction limited to defense of unwillingness to settle; trial context preserved. | No reversible error; instruction permissible. |
| Directed verdict on prima facie case | Evidence supported bad-faith claim given settlement conduct and release terms. | Record shows insurer acted reasonably and promptly; no bad faith. | Evidence sustains jury verdict; no directed-verdict error. |
Key Cases Cited
- Berges v. Infinity Insurance Co., 896 So.2d 665 (Fla. 2005) (focus is on insurer's conduct toward insured in settlement decisions)
- Boston Old Colony Ins. Co. v. Gutierrez, 386 So.2d 783 (Fla. 1980) (insurer owes duty to act in good faith for the insured when control is surrendered)
- Thompson v. Commercial Union Ins. Co. of New York, 250 So.2d 259 (Fla. 1971) (judgment creditor may sue insurer for bad faith to recover excess of policy limits)
- Auto-Owners Ins. Co. v. Conquest, 658 So.2d 928 (Fla. 1995) (statutory 'any person' enables third-party bad-faith actions)
- H & H Elec., Inc. v. Lopez, 967 So.2d 345 (Fla. 3d DCA 2007) (abuse-of-discretion standard for evidentiary rulings)
- Parker v. Graham & James, 834 So.2d 881 (Fla. 3d DCA 2002) (waiver principle for trial-issue objections when reviewing as a whole)
- Gallagher v. Fed. Ins. Co., 346 So.2d 95 (Fla. 3d DCA 1977) (considerations for preserving error in appellate review)