Fort Lauderdale Car Accident Attorney Blog
Auto insurance companies have an obligation to act reasonably in paying legitimate claims in a timely manner. When they do not, the courts may find they have acted in “bad faith.”
For the policy holder (or other injured party), a finding of bad faith can result in compensation that far exceeds the original policy amount. Both the courts and the legislature have authorized these severe sanctions as a means to compel insurers to act in good faith. But inevitably, examples of insurers acting in bad faith persist.
Recently, in GEICO v. Paton, Florida’s Fourth District Court of Appeal held the policy holder was not required to prove damages twice in two separate trials relating to the same injury – once in the underinsured motorist trial and the second in the bad faith trial. Rather, the court held, the jury’s finding of excess damages in the first trial would be sufficient proof of damages in the subsequent bad faith insurance action.