Avoiding Bad Faith Liability Just Got More Difficult

Law360, New York (May 15, 2013, 12:34 PM EDT) -- For insurers doing business in Florida, a recent appellate court decision reaffirms the importance of a timely offer of settlement, even in challenging circumstances, to protect against potential bad faith liability. In Goheagan v. American Vehicle Insurance Co., the Florida District Court of Appeal (Fourth Circuit) made clear that any delay in making an offer, even where there is no assurance that the claim could be settled, could be presented to the fact finder as evidence of bad faith.

The court examined a bad faith claim...
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