Professional Documents
Culture Documents
for
Professor Stephen Davis, Esquire
Legal Environment in Business (BUL-6810)
Florida International University
by
Jose A. Mata
MBA Candidate
Florida International University
28 September 2014
Perdido Sun filed the current lawsuit in Escambia County, seeking to hold Citizens
liable for bad faith, which according to Floridas Bad Faith Statute is defined as,
Not attempting in good faith to settle claims when, under all the circumstances, it
should have done so, had it acted fairly and honestly toward its insured and with
due regard for his or her interests. Perdido Sun (and another Perdido Key
Condominium, San Perdido in a sister case) has alleged that, Citizens purposely
This case centers around argument over whether the Florida Legislature intended to
grant Citizens blanket immunity to bad faith or whether exceptions to the limited
immunity built into Citizens enabling statute allow Perdido Sun, and others
similarly situated, to sue Citizens for bad faith. In briefs to the Court, Citizens has
claimed that it is a government agency and thus is immune to bad faith liability,
regardless of its behavior. Perdido Sun has alleged that without the threat of bad
faith liability that Citizens has no incentive whatsoever to settle claims promptly and
fairly and can drag the claims process out nearly indefinitely, at worst facing the
prospect of paying policyholders only what it should have paid under the policy in
the first place.
The trial court dismissed with prejudice Perdido Suns complaint for damages
against Citizens Property Insurance Corporations failure to attempt in good faith to
settle Perdido Suns property insurance claim. While Florida provides a civil
remedy for persons damaged by an insurers failure to settle claims in good faith,
the circuit court found that Citizens was immune from suit because it had immunity.
Answer: Yes it can. The analysis begins with what is a tort which is a
breech of a duty supplied by law which causes an injury or harm,. The
duty is supplied by the bad faith statute (624.155) which says that any
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Appellees Argument
Indicate at least 2 questions asked by the court and the attorneys response
1. Cant torts be created by statutes?
Answer: Only if you are looking for punitive will it apply. The facts of
a bad faith action can rise to the level of a willful tort but only for
assaults and employee misconduct. It also would only apply in the
case of fraud. (Rockenbach)
Appellants Rebuttal
Answer: Because in a third party action you are collecting for excess
damages as a result of a breech on contract. In the first party case you
are asking for more than damages but the punitive penalty for breech
the fiduciary trust and duty that good faith requires. (Beckish)
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which contradicted a similar decision made by the Fifth Circuit Court of Appeal.
In cases of contradiction, then the Florida Supreme Court does have to resolve
the difference so that there can be uniformity in the State.