An Insured Does Not Have Claims Against an Insurance Company for Breach of Implied Warranty of Good Faith and Fair Dealing

Chalfonte Condo. Apartment Ass’n, Inc. v. QBE Ins. Corp. (11th Cir. 2012)

In a dispute over an action brought by an insured under Fla. Stat. § 627.701(4)(a) against its insurer, the Eleventh Circuit certified the following questions to the Florida Supreme Court:

(1) Does Florida law recognize a claim for breach of the implied warranty of good faith and fair dealing by an insured against its insurer based on the insurer’s failure to investigate and assess the insured’s claim within a reasonable period of time? (2) May an insured bring a claim against an insurer for failure to comply with the language and type-size requirements established by Fla. Stat. § 627.701(4)(a)? (3) Does an insurer’s failure to comply with the language and type-size requirements established by Fla. Stat. § 627.701(4)(a) render a noncompliant hurricane deductible provision in an insurance policy void and unenforceable? (4) Does language in an insurance policy mandating payment of benefits upon ‘entry of a final judgment’ require an insurer to pay its insured upon entry of judgment at the trial level?

The Florida Supreme Court answered each question in the negative, prompting the Eleventh Circuit to affirm in part and reverse in part a district court’s judgment on the issue.

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Tags: Insured vs. Insurer, No Private Right of Action

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