Appraisal award constitutes a determination of liability as a condition precedent to bringing a bad faith action under Florida Statute 624.155.

The insured's home sustained sinkhole damage, and he filed a claim with State Farm when he disagreed with State Farm's damages estimate. The insured also filed a civil remedy notice, allowing State Farm 60 days to cure its alleged wrongful conduct. State Farm moved to dismiss the suit and required an appraisal. The court abated the suit and granted the motion for appraisal. The appraisal award was in favor of the insured, and State Farm paid the amount. The insured then voluntarily dismissed his lawsuit, but filed a bad faith action. State Farm sought summary judgment, asserting there had been no judgment against State Farm. The court determined that a breach of contract was not the only condition precedent to bring a bad faith claim, but found that an arbitration award establishing the validity of an insured's claim also satisfies the condition precedent.

Case Law Alerts, 3rd Quarter 2013