{"id":1555,"date":"2013-04-28T06:57:11","date_gmt":"2013-04-28T12:57:11","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=1555"},"modified":"2013-04-25T10:46:09","modified_gmt":"2013-04-25T16:46:09","slug":"florida-second-dca-rules-that-payment-of-appraisal-award-satisfies-the-favorable-resolution-requirement-for-a-bad-faith-action","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/florida-second-dca-rules-that-payment-of-appraisal-award-satisfies-the-favorable-resolution-requirement-for-a-bad-faith-action\/","title":{"rendered":"Florida Second DCA Rules That Payment Of Appraisal Award Satisfies The \u201cFavorable Resolution\u201d Requirement For A Bad Faith Action"},"content":{"rendered":"<p>Ben Adams &#8211; April 19, 2013<\/p>\n<p>In Florida, bad-faith actions against insurers pursuant to Section 624.155 cannot be brought until (1) the insured files a civil remedy notice (CRN) accepted by Florida\u2019s Department of Financial Services; and (2) the underlying breach of contract lawsuit is \u201cresolved in the insured\u2019s favor.\u201d\u00a0See Blanchard v. State Farm Mut. Ins. Co., 575 So. 2d 1289, 1291 (Fla. 1991).\u00a0Recently, Florida\u2019s Second Distruct Court of Appeal ruled that (1) the insured\u2019s CRN did not require the inclusion of a specific cure amount; and (2) \u00a0payment of an appraisal award by the insurer satisfied the condition precedent to the insured\u2019s bad-faith action.<\/p>\n<p>In Hunt v. State Farm Florida Ins. Co., 2013 Fla. App. LEXIS 5528 (Fla. 2d Dist. Ct. App. Apr. 5, 2013), the insured, Hunt, sustained sinkhole damage in July 2006.\u00a0Hunt disagreed with State Farm\u2019s damage estimate, and in April 2007 sued for breach of contract and filed a CRN, which was accepted by the Department of Financial Services. The court granted State Farm\u2019s motion for appraisal and abated the lawsuit pending an appraisal award.\u00a0In October 2008, an appraisal award of $162,571.61 was entered in Hunt\u2019s favor, and State Farm \u00a0paid that amount.\u00a0Following the payment of the appraisal award, Hunt voluntarily dismissed his breach of contract lawsuit but subsequently filed a bad-faith action.\u00a0State Farm moved for summary judgment, arguing that Hunt had not obtained a \u201cjudgment\u201d in the first lawsuit, which was a condition precedent to maintaining his bad faith action.\u00a0The Second DCA disagreed, ruling that the payment of the appraisal award satisfied the \u201cfavorable resolution\u201d requirement under Blanchard. Noting that prior courts have held that \u201ca judgment is not the only way of obtaining a favorable resolution,\u201d and that arbitration awards have previously established the insured\u2019s condition precedent, the court concluded that an appraisal award similarly satisfied the validity of Hunt\u2019s claim.<\/p>\n<p>The Second DCA\u2019s decision in Hunt provides the latest in a series of cases in Florida on the issue of what constitutes a \u201cfavorable resolution\u201d to maintain a bad faith action.\u00a0As discussed in our earlier blog entries, the Fourth DCA recently issued conflicting opinions on this very issue.\u00a0Those courts that consider an appraisal award a \u201cfavorable resolution\u201d do not appear to recognize the differences between appraisal, which resolves valuation only, and arbitration, which more fully addresses the coverage issues in dispute.\u00a0Those Florida courts that have reached the opposite conclusion refuse to allow an insured to use a preemptive, early demand for appraisal as a\u00a0 basis for a bad faith claim.<\/p>\n<p>It should be noted that State Farm also claimed that Hunt\u2019s CRN was invalid because there was no specified \u201ccure\u201d amount claimed in his notice.\u00a0The Second DCA disagreed, ruling that the plain language of Section 624.155 does not require a specific amount to be included in the notice, and that State Farm was otherwise sufficiently apprised of the assertion made by Hunt.<\/p>\n<p>via <a href=\"http:\/\/www.propertyinsurancecoverageinsights.com\/2013\/04\/19\/florida-second-dca-rules-that-payment-of-appraisal-award-satisfies-the-favorable-resolution-requirement-for-a-bad-faith-action\/\">Florida Second DCA Rules That Payment Of Appraisal Award Satisfies The \u201cFavorable Resolution\u201d Requirement For A Bad Faith Action | Property Insurance Coverage Insights<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ben Adams &#8211; April 19, 2013 In Florida, bad-faith actions against insurers pursuant to Section 624.155 cannot be brought until (1) the insured files a civil remedy notice (CRN) accepted by Florida\u2019s Department of Financial Services; and (2) the underlying breach of contract lawsuit is \u201cresolved in the insured\u2019s favor.\u201d\u00a0See Blanchard v. State Farm Mut.&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/florida-second-dca-rules-that-payment-of-appraisal-award-satisfies-the-favorable-resolution-requirement-for-a-bad-faith-action\/\">Continue reading <span class=\"screen-reader-text\">Florida Second DCA Rules That Payment Of Appraisal Award Satisfies The \u201cFavorable Resolution\u201d Requirement For A Bad Faith Action<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[3],"tags":[218,140],"class_list":["post-1555","post","type-post","status-publish","format-standard","hentry","category-insurance-claims","tag-appraisal","tag-bad-faith","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Florida Second DCA Rules That Payment Of Appraisal Award Satisfies The \u201cFavorable Resolution\u201d Requirement For A Bad Faith Action - Advise &amp; Consult, Inc.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/florida-second-dca-rules-that-payment-of-appraisal-award-satisfies-the-favorable-resolution-requirement-for-a-bad-faith-action\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Florida Second DCA Rules That Payment Of Appraisal Award Satisfies The \u201cFavorable Resolution\u201d Requirement For A Bad Faith Action - Advise &amp; Consult, Inc.\" \/>\n<meta property=\"og:description\" content=\"Ben Adams &#8211; April 19, 2013 In Florida, bad-faith actions against insurers pursuant to Section 624.155 cannot be brought until (1) the insured files a civil remedy notice (CRN) accepted by Florida\u2019s Department of Financial Services; and (2) the underlying breach of contract lawsuit is \u201cresolved in the insured\u2019s favor.\u201d\u00a0See Blanchard v. 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