Bad Faith Blog

Summary: Stefanie Hardacre struck and injured motorcyclist Grand Nelson. A third vehicle was also involved, but that driver’s insurer paid Nelson the policy limits of $100,000. Hardacre’s insurer, Progressive, determined that Hardacre was not at fault. Progressive denied Nelson’s claim; it had closed its investigation file three days after acknowledging receipt.

Summary: Kelly Paton was injured when her vehicle was struck by an underinsured driver (“UIM”). At the time, Paton was covered by an insurance policy issued by GEICO. GEICO failed to pay the full amount due under the UIM provision and Paton filed suit. Paton obtained a jury verdict in her favor on a breach of contract and a bad faith claim. As the prevailing party, Florida’s bad faith law entitled Paton to attorneys’ fees. Paton then served discovery requests on GEICO seeking to obtain GEICO’s billing and time records and lodestar fee interrogatories. GEICO objected, arguing that the records were privileged and irrelevant. The trial court overruled GEICO’s objection, but the Court of Appeals quashed the trial court’s orders requiring GEICO to produce the time records.

Summary: A 1996 Jeep Grand Cherokee owned by Daniel and Sheryl Berg sustained heavy damage in an accident. The Bergs took their vehicle to a dealer participating in their automobile insurer’s “Blue Ribbon Repair Service Program.” According to the Bergs, although the appraiser concluded the Jeep’s frame could not be repaired because it was “too twisted,” the insurer “reversed” the appraisal and sent the Jeep to another repair shop to attempt repairs over the next four months.