When a person buys an insurance policy -- whether it's for a home, motor vehicle or health -- the person holding the policy has a reasonable expectation that their insurance provider will act in good faith when it comes to maintaining their policy and act in the best interest of the policy holder when it comes time to pay out on a policy. When a policy holder suspects that the insurance provider has not acted in their best interest, the insurance provider is considered to have acted in bad faith, which can leave them liable for damages in civil litigation.
This is an important piece of information to keep in mind, especially because it applies not only to the case we are about to present to you in this week's blog post, but it could apply to anyone here in Florida as well. That's because the issue of good versus bad faith could easily come up for you down the road, which is something we'd like to have our readers prepared for so that they can hopefully avoid costly litigation down the road.
The case we are about to present is that of Cammarata v. State Farm Florida Insurance Company, which is set to go before the Florida Supreme Court. The reason our state's highest court has been asked to look over this case is because of a ruling in September by the Fourth District Court of Appeals. That decision reversed a lower court decision, which then raised an important question about when a bad faith action can be filed.
Although the court of appeals is sure that its decision to rule in favor of the policy holders was in line with previous court decisions on the matter, the district court is looking to the Florida Supreme Court for clarification on the issue.
What this case should illustrate for our Melbourne readers is the complexity of the law, especially when it comes to insurance and good faith actions. This case shows that even the courts can disagree on the interpretation of the law, which is all the more reason to seek legal help before taking on a case like this yourself.