Justia Insurance Law Opinion Summaries

Plaintiffs filed suit against 21st Century, alleging that the insurance company acted in bad faith towards its insured. The district court granted judgment in favor of 21st Century. The court held that an insurer owes no duty under Florida law to enter into a so-called Cunningham agreement and likewise owes no duty to its insured to enter into a consent judgment in excess of the limits of its policy. In this case, the district court correctly precluded plaintiffs from introducing evidence of a settlement opportunity letter in support of their bad-faith claim. The court further concluded that this is true whether the court applies the de novo standard of review advocated by plaintiffs or the abuse-of-discretion standard asserted by 21st Century. Accordingly, the court affirmed the judgment. View "Kropilak v. 21st Century Ins. Co." on Justia Law