KENT INSURANCE COMPANY, APPELLANT/CROSS APPELLEE,
v.
REDHA HASSAN, M.D., D/B/A BEIRUT RESTAURANT, APPELLEE/CROSS APPELLANT
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Kent Insurance Company appealed a jury verdict awarding punitive damages and lost profits to an insured based on a first-party bad faith claim. The court reversed, holding that Florida law does not permit first-party bad faith claims against insurers, and also reversed the lost profits award and remanded for recalculation of attorney's fees.
First-party bad faith claims are not permitted under Florida law. The punitive damages award was reversed on this basis. The lost profits award was also reversed. Attorney's fees must be recalculated based solely on breach of contract damages actually awarded, not on the now-reversed claims.
[1] Florida law does not permit first-party claims of bad faith by an insured against an insurer.
[2] A judgment predicated on a jury verdict awarding punitive damages for a first-party bad faith claim must be reversed.
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Join FLexlaw to unlock all legal intelligence“Florida law does not permit first party claims of bad faith by an insured against an insurer”
The controlling legal principle that necessitated reversal of the punitive damages award based on Romer precedent
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Join FLexlaw to unlock all legal intelligenceRedha Hassan, M.D., operating Beirut Restaurant, made a first-party bad faith claim against Kent Insurance Company. A jury verdict awarded punitive da…
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PER CURIAM.
The judgment predicated on a jury verdict which awarded “punitive” damages for appellee’s first party bad faith claim is reversed on the authority of Industrial Fire & Casualty Insurance Co. v. Romer, 432 So. 2d 66 (Fla. 4th DCA 1983). In Romer, Judge Letts, writing for the court, expressly noted that Florida law does not permit first party claims of bad faith by an insured against an insurer.
Accordingly, the appellant's motions challenging this cause of action before, during, and after trial should have been granted. Romer, of course, was decided after the trial of this case, but relied on case law in existence for some time. A contrary view is expressed in Escambia Treating Co. v. Aetna Casualty & Surety Co., 421 F.Supp. 1367 (N.D.Fla.1976), a case relied on by appellee in the court below and a case expressly rejected in Romer.
We reject appellee’s claim that he alleged and proved an independent tort sufficient to justify the imposition of the punitive damages awarded below. We also reverse the jury award for damages for alleged loss of profits on the authority of Cora Pub, Inc. v. Continental Casualty Co., 619 F. 2d 482 (5th Cir.1980). Because we are reversing the punitive damages and loss of profits awards, we also must reverse and remand the cause for a redetermination of the claim for attorney's fees by the appellee, since any such award must be predicated solely on the breach of contract claim and damages awarded therefor.
We find no merit in the issues raised on cross appeal.
In summary, we reverse the awards for punitive damages and loss of profits, affirm the other breach of contract awards, and reverse the award for attorney’s fees with directions that further proceedings be conducted to determine a proper award of fees.
ANSTEAD, C.J., and BERANEK and WALDEN, JJ., concur.
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Dunn v. Nat'l Sec. Fire & Cas. Co., 631 So. 2d 1103 (Fla. 5th DCA 1993)…otton States Mutual Insurance Co. v. Trevethan, 390 So. 2d 724 (Fla. 5th DCA), rev. denied, 392 So. 2d 1373 (Fla.1980). . Allstate Co. v. Douville, 510 So. 2d 1200 (Fla. 2d DCA), rev. denied, 519 So. 2d 986 (Fla.1987); Kent Insurance Co. v. Hassan, 447 So. 2d 323 (Fla. 4th DCA 1984); Industrial Fire & Casualty Insurance Co. v. Romer, 432 So. 2d 66 (Fla. 4th DCA), rev. denied, 441 So. 2d 633 (Fla.1983); Baxter v. Royal Indemnity Co., 285 So. 2d 652 (Fla. 1st DCA 1973), cert. discharged, 317 So. 2d 725 (Fla.19…
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T.D.S. Inc. v. Shelby Mut. Ins. Co., 760 F.2d 1520 (11th Cir. 1985)…insurance company for bad faith in failing to pay a first party claim.” Smith v. Standard Guaranty Insurance Co., 435 So. 2d 848, 849 (Fla.Dist.Ct.App.), petition for review denied, 441 So. 2d 633 (Fla.1983); see Kent Insurance Co. v. Hassan, M.D., 447 So. 2d 323 (Fla.Dist.Ct.App.1984). This view is premised in part on the notion that in a first party claim situation, the insurer “and its insured occupy the status of debt- or and creditor.” Smith, 435 So. 2d at 849 (citing Baxter v. Royal Indemnity Co., 285…
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Rowland v. Safeco Ins. Co. of Am., 634 F. Supp. 613 (M.D. Fla. 1986)…. Stat. § 624.155, Florida law did not recognize a cause of action for a bad faith refusal to pay the claim of a first party. T.D.S., Inc. v. Shelby Mutual Insurance Co., 760 F.2d 1520, 1529 (11th Cir.1985); Kent Insurance Co. v. Hassan, 447 So.2d 323, 324 (Fla. 4th DCA 1984); Industrial Fire & Casualty Insurance Co. v. Romer, 432 So.2d 66, 67 (Fla. 4th DCA 1983). Bad faith refusal to pay would give rise to a claim only if the actions constituted a separate tort such as fraud or intentional…
Previewing 3 of 4 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Indus. Fire & Cas. Ins. Co. v. Romer, 432 So. 2d 66 (Fla. 4th DCA 1983)
- Cora PUB, Inc. v. Cont'l Cas. Co., 619 F.2d 482 (5th Cir. 1980)