Narrative Opinion Summary
In this legal proceeding, United Property and Casualty Insurance Company challenged a non-final order that denied its motion to dismiss a count in the insured plaintiffs' amended complaint. The disputed count alleged a breach of the implied covenant of good faith and fair dealing under Florida common law. United argued that Florida law mandates such claims be pursued as statutory remedies under section 624.155, Florida Statutes, and that common law claims of this nature are not recognized, referencing the Florida Supreme Court's decision in QBE Insurance Corp. v. Chalfonte Condominium Apartment Ass’n. The appellate court agreed with United's position, quashing the trial court's order and instructing it to reassess the motion in accordance with the precedent established in the QBE Insurance case. The appellate court further noted that any bad-faith claims should be deferred until the underlying breach of contract issues are resolved. The decision was supported by Judges Warner, Stevenson, and Gross, emphasizing adherence to statutory frameworks over common law interpretations in first-party insurance disputes.
Legal Issues Addressed
Implied Covenant of Good Faith in Insurance Contractssubscribe to see similar legal issues
Application: The court found that Florida law does not recognize a common law duty of good faith in first-party insurance claims, necessitating adherence to statutory remedies.
Reasoning: United contended that count II failed to establish a cause of action since Florida law does not recognize a common law duty of good faith regarding first-party insurance claims, asserting that such claims must adhere to statutory remedies outlined in section 624.155, Florida Statutes.
Procedural Posture in Insurance Disputessubscribe to see similar legal issues
Application: The court determined that any statutory bad-faith claims should be deferred until the resolution of the underlying breach of contract claim.
Reasoning: Furthermore, even if a common law action were permissible, United maintained that count II should be dismissed without prejudice until the underlying breach of contract claim is resolved, as any statutory claim arises only after the insured demonstrates liability and damages.
Statutory Remedy for First-Party Bad-Faith Claimssubscribe to see similar legal issues
Application: The court directed that claims of first-party bad faith must be pursued under section 624.155, as emphasized by the Florida Supreme Court in the QBE Insurance ruling.
Reasoning: The trial court's denial of United's motion occurred without consideration of the Florida Supreme Court's ruling in QBE Insurance Corp. v. Chalfonte Condominium Apartment Ass’n, which clarified that Florida law does not recognize a common law first-party bad-faith claim.