Date: 06-06-2025

Case Style:

Janeth Trujillo, et al. v. American Security Insurance Company

Case Number: 24-cv-62135

Judge: David S. Leibowitz

Court: United States District Court for the Southern District of Florida (Broward County)

Plaintiff's Attorney: Gabriel Fernandez, Chaudio Balladares

Defendant's Attorney: Bradley Aiken

Description: Fort Lauderdale, Florida insurance law lawyers represented the Plaintiff who sued on a bad faith breach of insurance contract theory.

In Florida, bad faith actions against insurers are governed by Florida Statute 624.155. This statute allows a policyholder to sue an insurer for damages caused by the insurer's failure to act in good faith in settling a claim. Bad faith claims often arise when an insurer unreasonably denies or delays a claim.

Key Points:

Statutory Basis:

Florida law provides a specific statutory remedy for bad faith, as well as a common law remedy based on the implied covenant of good faith and fair dealing.

Implied Covenant:

Every contract in Florida, including insurance policies, includes an implied covenant of good faith and fair dealing. A breach of this covenant can occur if a party deliberately acts to frustrate the purpose of the contract.

First-Party vs. Third-Party Bad Faith:

First-party bad faith claims involve disputes between the insured and the insurer, while third-party bad faith involves the insurer's duty to defend an insured in a lawsuit.

Proving Bad Faith:

To prove bad faith, a policyholder must demonstrate that the insurer acted unreasonably, often by denying or delaying a claim without proper justification.

Damages:

Successful bad faith claims can result in damages beyond the policy limits, including punitive damages, to deter future bad faith behavior.
Tender:

Florida Statute 624.155(1) outlines the process for filing a bad faith claim. An insurer can avoid a bad faith lawsuit by tendering the lesser of the policy limits or the amount demanded by the claimant within 90 days of receiving notice of the claim.

Recent Legislative Changes:

Florida law has undergone changes, including the introduction of 624.1551, which creates new barriers for policyholders to sue insurers for bad faith, requiring a court ruling on a breach of contract before a bad faith claim can be filed.

Outcome: Settled and dismissed.

Plaintiff's Experts:

Defendant's Experts:

Comments: