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Donald E. Blanchard, Jr., Patricia S. Blanchard v. State Farm Mutual Automobile Insurance Company, an Illinois Corporation

Citations: 931 F.2d 789; 1991 U.S. App. LEXIS 10379; 1991 WL 66707Docket: 89-3541

Court: Court of Appeals for the Eleventh Circuit; May 17, 1991; Federal Appellate Court

Narrative Opinion Summary

In the case of Donald E. Blanchard, Jr. and Patricia S. Blanchard v. State Farm Mutual Automobile Insurance Company, the Eleventh Circuit Court of Appeals addressed a certified question to the Florida Supreme Court regarding the timing of an insured's claim against an uninsured motorist carrier for alleged bad faith settlement failures under Florida Statutes § 624.155(1)(b)(1). The Florida Supreme Court determined that such a claim does not accrue until after the conclusion of the underlying litigation concerning the uninsured motorist benefits. Consequently, the Eleventh Circuit vacated the district court's judgment and denied the motion to dismiss, remanding the case for further proceedings in accordance with the clarified law. The court expressed gratitude to the Florida Supreme Court for its guidance.

Legal Issues Addressed

Accrual of Bad Faith Claim under Florida Statutes § 624.155(1)(b)(1)

Application: The Florida Supreme Court clarified that a bad faith claim against an uninsured motorist carrier does not accrue until the underlying litigation on the uninsured motorist benefits concludes.

Reasoning: The Florida Supreme Court determined that such a claim does not accrue until after the conclusion of the underlying litigation concerning the uninsured motorist benefits.

Procedural Outcome Following Clarification of Law

Application: Following the clarification provided by the Florida Supreme Court, the Eleventh Circuit vacated the previous judgment and remanded the case for further proceedings consistent with the new interpretation.

Reasoning: Consequently, the Eleventh Circuit vacated the district court's judgment and denied the motion to dismiss, remanding the case for further proceedings in accordance with the clarified law.