Maryland Casualty Co. v. Alicia Diagnostic, Inc.
Docket: No. 5D07-547
Court: District Court of Appeal of Florida; July 27, 2007; Florida; State Appellate Court
Petitioner Maryland Casualty Company seeks certiorari review of a trial court order that denied its motion to dismiss claims brought by Respondents, the plaintiffs. Maryland Casualty contends that the trial court erred by allowing Respondents to pursue both a first-party breach of insurance contract claim and a bad faith claim simultaneously. The court agrees, stating that under Florida law, a bad faith claim cannot be litigated until the underlying coverage dispute is resolved. The rationale is that if there is no insurance coverage or loss for which the insurer is obligated to indemnify, the insurer cannot be deemed to have acted in bad faith. Additionally, litigating a bad faith claim alongside a coverage claim could prejudice the insurer, as evidence for one claim may influence the jury’s perception of the other. Consequently, the court quashes the trial court's order and remands for further proceedings, emphasizing that the bad faith claim should be dismissed without prejudice. Judges Thompson and Torpy concur with this decision.