Claim for Punitive Damages Based on Insurers' Alleged Bad Faith Business Practices Fails

Failure in ripped paper

Florida law only permitted a claim for punitive damages where acts giving rise to the violation occurred with such frequency as to indicate a general business practice.

September 5, 2022
Tred R. Eyerly - Insurance Law Hawaii

The court granted the insurer's motion to dismiss the bad faith claim based upon allegations of a general business practice of acting recklessly toward an insured's rights under the policy. Sandpiper Isle Condo. Ass'n v. Empire Indem. Ins. Co., 2022 U.S. Dist. LEXIS 114279 (M.D. Fla. June 28, 2022).

Sandpiper suffered property damage from Hurricane Irma. Empire accepted the claim but there was disagreement on the value of the damage. An appraisal issued an award in favor of Sandpiper but Empire failed to pay the benefits for two years.

Mr. Eyerly may be contacted at te@hawaiilawyer.com



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