Florida Supreme Court Issues Anti-Consumer Opinion and Holds Insurance Companies Are Immune From Foreseeable and Consequential Damages When They Breach Contracts

Insurance companies in Florida can cause foreseeable harm to their policyholders and not be held accountable pursuant to a recent opinion by the Florida Supreme Court.¹

The holding by the court stated:

[E]xtra-contractual, consequential damages are not available in a first-party breach of insurance contract action because the contractual amount due to the insured is the amount owed pursuant to the express terms and conditions of the policy. Extra-contractual damages are available in a separate bad faith action pursuant to section 624.155 but are not recoverable in this action against Citizens because Citizens is statutorily immune from first-party bad faith claims. See § 627.351(6)(s)1., Fla. Stat. (2019); see also Citizens Prop. Ins. Corp. v. Perdido Sun Condo. Ass’n, 164 So. 3d 663, 664, 668 (Fla. 2015).

The ruling makes the Civil Remedy Act for insurer misconduct much more important. The ruling invites insurance adjusters to delay and deny claims with impunity. It certainly does not follow the law’s concern for holding bad actors breaching contracts accountable for the foreseeable results of their actions.

Thought For The Day

Accountability breeds response-ability.
—Stephen Covey
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¹ Citizens Prop. Ins. Corp. v. Manor House, No. SC19-1394, — So. 3d — (Fla. Jan. 21, 2021).