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Perera v. United States Fid. & Guar. Co.

Perera v. United States Fid. & Guar. Co.

Supreme Court of Florida

May 6, 2010, Decided

No. SC08-1968

Opinion

 [*894]  PARIENTE, J.

This case, pending in the federal court, involves interpretation of  [**2] Florida law on third-party bad-faith causes of action in insurance cases. We have jurisdiction because the Eleventh Circuit Court of Appeals certified two questions, 1 which are " [*895]  determinative of the cause and for which there is no controlling precedent." Art. V, § 3(b)(6), Fla. Const.

Although in this case the Eleventh Circuit has asked us broad questions regarding common law bad-faith cause of actions under Florida law, we have determined that, based on the unique circumstances of this case, the answer to whether the appellant, Pamela Perera ("Perera"), has an actionable bad-faith case against appellee, United States Fidelity and Guaranty Company ("USF&G"), allows for a more  [**3] narrow framing of the question:

MAY A CAUSE OF ACTION FOR THIRD-PARTY BAD FAITH AGAINST AN INDEMNITY INSURER BE MAINTAINED WHEN THE INSURER'S ACTIONS WERE NOT A CAUSE OF THE DAMAGES TO THE INSURED OR WHEN THE INSURER'S ACTIONS NEVER RESULTED IN EXPOSURE TO LIABILITY IN EXCESS OF THE POLICY LIMITS OF THE INSURED'S POLICIES?

The jury in this case found that USF&G acted in bad faith and that finding is not controverted. The issue raised by the rephrased certified question is whether the insured sustained recoverable damages as the result of the bad faith. We answer the rephrased certified question in the negative because, based on the facts of this case, the insurer's actions neither caused the damages claimed by the insured nor resulted in exposure of the insured to liability in excess of the policy limits of the insureds' polices.

FACTS AND PROCEDURAL HISTORY

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35 So. 3d 893 *; 2010 Fla. LEXIS 686 **; 35 Fla. L. Weekly S 235

PAMELA PERERA, Appellant, vs. UNITED STATES FIDELITY AND GUARANTY COMPANY, Appellee.

Subsequent History: Decision reached on appeal by Perera v. United States Fid. & Guar. Co., 2010 U.S. App. LEXIS 17210 (11th Cir. Fla., Aug. 16, 2010)

Prior History:  [**1] Certified Question of Law from the United States Court of Appeals for the Eleventh Circuit - Case No. 06-10925.

Perera v. United States Fid. & Guar. Co., 544 F.3d 1271, 2008 U.S. App. LEXIS 21177 (11th Cir. Fla., 2008)

CORE TERMS

insured, settlement, bad faith, bad-faith, settle, coverage, excess judgment, limits, policy limit, good faith, cause of action, third-party, primary insurer, excess insurer, damages, circumstances, policies, consent judgment, indemnity policy, mediation, insurance policy, negotiated, employees, claimant, equitable subrogation, claim for damages, assignee, exposure, causal connection, exceeding

Insurance Law, Liability & Performance Standards, Settlements, General Overview, Good Faith & Fair Dealing, Third Party Claims, Excess Judgments, Bad Faith & Extracontractual Liability, Refusals to Defend, Claim, Contract & Practice Issues, Subrogation, Equitable Subrogation, Types of Insurance, Excess Insurance, Subrogation, Elements of Bad Faith