STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY, PETITIONER,
v.
MICHELLE WALLIS COOK, TEDDY COOK, LISA JONES, DAVID J. JONES, EUTIMIO PEREZ, AND JEAN SMITHERS, RESPONDENTS
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State Farm sought certiorari review challenging a trial court's denial of a stay of bad faith claims and denial of a protective order to shield certain documents from discovery. The appellate court granted certiorari, holding that bad faith claims cannot accrue until underlying claims are resolved, and therefore must be stayed and protected from discovery.
Bad faith claims do not accrue until the underlying claims against the insured or third-party tortfeasor are decided, requiring the claims to be stayed. An insurer's claims and litigation files and internal manuals are protected from discovery until bad faith claims become ripe and are actually prosecuted.
[1] Bad faith claims against an insurer do not accrue until underlying claims against the insured or a third party are resolved.
[2] A stay of bad faith claims is warranted pending resolution of underlying tort claims and claims for policy benefits.
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Join FLexlaw to unlock all legal intelligence“ordinarily a third-party is required to prevail against the insured before litigating a bad faith claim against the insurer”
Establishes that bad faith claims cannot be brought until underlying claims are resolved
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Join FLexlaw to unlock all legal intelligenceState Farm insured both Michelle and Teddy Cook and also insured Lisa Jones, who was involved in a car accident with Michelle Cook. The Cooks executed…
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PER CURIAM.
State Farm Mutual Automobile Insurance Company seeks certiorari review of two orders of the trial court, one denying a stay of bad faith claims against it, and the other denying its motion for a protective order. We have jurisdiction. See Michigan Millers Mut. Ins. Co. v. Bourke, 581 So. 2d 1368 (Fla. 2d DCA 1991); approved, 607 So. 2d 418 (Fla.1992). We quash the order denying the stay of the bad faith claims, and quash, in part, the order denying the motion for a protective order. State Farm insured Michelle and Teddy Cook, and also insured Lisa Jones, an individual who was involved in a ear accident with Michelle Cook. The Cooks executed a release of Jones and State Farm. Subsequent to execution of the release, the Cooks sued State Farm and two alleged tortfeasors, including Jones, for damages resulting from two automobile accidents. The Cooks seek to rescind the release in that action. The Cooks also allege breach of contract and bad faith claims against State Farm.
State Farm filed a motion to stay the bad faith claims until the other claims are resolved, and sought a protective order to avoid production of a number of documents relevant to the bad faith claims, including its claims files, litigation files, and internal operating manuals. The trial court denied both motions.
The trial court erred in denying the motion for stay. These claims against State Farm, both as Jones’ insurer and as the Cooks’ insurer, do not accrue until the other claims are decided. The supreme court noted in Cunningham v. Standard Guaranty Insurance Co., 630 So. 2d 179, 181 (Fla.1994), that ordinarily a third-party is required to prevail against the insured before litigating a bad faith claim against the insurer. Similarly, in Blanchard v. State Farm Mutual Automobile Insurance Co., 575 So. 2d 1289 (Fla.1991), the court ruled that an insured’s first-party action for benefits against the insurer must be resolved before a cause of action for bad faith against the insurer accrues. Id. at 1291.
Because the bad faith claims must be stayed, the trial court’s order denying a protective order is quashed insofar as it addresses materials relating to the bad faith claims. State Farm’s claims and litigation files are not subject to discovery until the bad faith claims are ripe. See State Farm Fire & Cas. Co. v. Martin, 673 So. 2d 518, 519 (Fla. 5th DCA 1996); Michigan Millers Mut. Ins. Co. v. Bourke, 581 So. 2d at 1370. Its internal manuals are also protected from discovery until and unless the bad faith claims are prosecuted. See State Farm Fire & Cas. Co. v. Valido, 662 So. 2d 1012, 1013 (Fla. 3d DCA 1995).
Certiorari is granted; the order of the trial court denying the stay is quashed; the order denying the protective order is quashed in part; this case is remanded to the trial court for further proceedings in accordance with this opinion.
THREADGILL, A.C.J., and FULMER and DAVIS, JJ., Concur.
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GEICO Gen. Ins. Co. v. HOY, 927 So. 2d 122 (Fla. 2d DCA 2006)…coverage [was] still partially pending.” Id. Similarly, when a claimant seeks to rescind a release given to the insurer and alleges breach of contract and bad faith, the issue of coverage is not settled. See State Farm Mut. Auto. Ins. Co. v. Cook, 744 So. 2d 567, 568 (Fla. 2d DCA 1999). In Cook, the claimant gave a release to the insurer and to the driver of another vehicle. Id. Afterwards, the claimant filed an action against the insurer and two alleged tortfeasors, including the driver, for damages result…
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Avatar Prop. & Cas. Ins. Co. v. Jones, 291 So. 3d 663 (Fla. 2d DCA 2020)…U.S. Fire Ins. Co. v. Clearwater Oaks Bank, 421 So. 2d 783 (Fla. 2d DCA 1982); W. Am. Ins. Co. v. Neva Prods., Inc., 490 So. 2d 117 (Fla. 2d DCA 1986); Geico Gen. Ins. Co. v. Hoy, 927 So. 2d 122 (Fla. 2d DCA 2006); State Farm Mut. Ins. Co. v. Cook, 744 So. 2d 567 (Fla. 2d DCA 1999); Am. Bankers Ins. Co. of Florida v. Wheeler, 711 So. 2d 1347 (Fla. 5th DCA 1998); Michigan Millers Mut. Ins. Co. v. Bourke, 581 So. 2d 1368 (Fla. 2d DCA 1991); State Farm Fire & Cas. Co. v. Martin, 673 So. 2d 518 (Fla. 5th DCA 199…
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People's Tr. Ins. Co. v. Foster, 308 So. 3d 687 (Fla. 1st DCA 2021)…dling policies, practices, procedures, manuals or guidelines as premature); Gen. Star Indem. Co., 93 So. 3d 501, 502-03 (Fla. 3d DCA 2012) (quashing order requiring production of premature bad faith discovery); State Farm Mut. Auto Ins. Co. v. Cook, 744 So. 2d 567, 568 (Fla. 2d DCA 1999) (finding that the plaintiff was not entitled to materials relevant to bad faith claim). People’s Trust argues that this case, too, presents an order that requires quashing. It asserts that the circuit court’s order allowing…
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
- Blanchard v. State Farm Mut. Auto. Ins. Co., 575 So. 2d 1289 (Fla. 1991)
- Cunningham v. Standard Guar. Ins. Co., 630 So. 2d 179 (Fla. 1994)
- State Farm Fire & Cas. Co. v. Valido, 662 So. 2d 1012 (Fla. 3d DCA 1995)
- Mich. Millers Mut. Ins. Co. v. Bourke, 581 So. 2d 1368 (Fla. 2d DCA 1991)
- Mich. Millers Mut. Ins. Co. v. Bourke, 607 So. 2d 418 (Fla. 1992)
- State Farm Fire & Cas. Co. v. Martin, 673 So. 2d 518 (Fla. 5th DCA 1996)