Bad Faith Blog

The Eleventh Circuit considered whether the insurer was bound by a settlement agreement between a homeowner’s association insured and a homeowner, settling the homeowner’s claim for attorneys’ fees by stipulating the homeowner would not enforce the resulting consent judgment against the homeowner’s association. The Eleventh Circuit found these Florida Coblentz Agreements unenforceable against insurers if tainted with fraud or collusion. There was substantial evidence to support the district court’s bench trial determination the negotiations were conducted in bad faith. Therefore, the Eleventh Circuit affirmed the district court’s Judgment that the settlement agreement could not be enforced against the insurer.