Bankruptcy Trustee Must Decide If Bad Faith Claim Will Be Pursued, Judge Says

( April 2, 2026, 7:45 AM EDT) -- TAMPA, Fla. — A Florida federal judge deferred ruling on an auto insurer’s motion for summary judgment and stayed the third-party claimant’s bad faith suit against the insurer after determining that the third-party claimant must notify the trustee of the insured’s bankruptcy estate of the bad faith claim and allow the trustee to determine whether the bad faith claim will be pursued....