Florida Appeals Court Reverses Dismissal of Bad Faith Suit Against First Protective Insurance

In a significant legal development, the Florida 4th District Court of Appeal has overturned a lower court’s decision, reviving a bad-faith lawsuit filed by homeowner Susan Cingari against First Protective Insurance Co. Cingari’s lawsuit stemmed from a prolonged delay in receiving full compensation for sinkhole damage to her Boca Raton home. Despite eventually paying the full policy limits, First Protective initially claimed the damage, caused by a sinkhole, was not covered by its policy.

Cingari first filed a claim in 2015, receiving payments totaling $59,456, which she deemed insufficient. Her lawsuit in the 15th Judicial Circuit sought an appraisal, which resulted in an umpire awarding her $304,620.35 in 2019. The insurer’s contention that it only realized the damage was due to an excluded peril after this payment did not convince Judge Joseph Curley, who initially granted First Protective’s motion for summary judgment, dismissing the bad faith suit in August 2022.

However, the appellate panel highlighted the insurer’s duty under Florida statutes to promptly and adequately investigate claims, including determining the cause of damage. The court’s reversal of the summary judgment and remand for further proceedings signify a critical juncture in the ongoing dispute. Additionally, the court approved Cingari’s motion for the insurer to pay her attorney fees, although this decision faced dissent within the panel.

This case occurs in the context of recent legislative changes in Florida. In 2022, the Florida Legislature amended the bad-faith statute, raising the standards for filing such lawsuits and limiting circumstances under which they can proceed. The law now requires a determination of policy contract breach before bad-faith claims can be filed and restricts lawsuits if insurers settle claims within 90 days. The full implications of these changes, particularly regarding the timing of policy or claim dates, remain to be clarified by Florida appeal courts.