sharminlaw

Does the Plaintiff Have to Make a Settlement Offer Before Bad Faith is an Issue?

No.  A settlement offer is not a requirement before a bad faith action. A formal settlement offer is only one issue that could be considered  in an action for bad faith.  In the Powell case, the 3rd DCA held that when liability is clear and injuries are so serious that it is likely a judgment will exceed the policy limits, an insurer has an affirmative obligation to the insured to initiate settlement negotiations. The 1st DCA has held that as long as an insurance company denied coverage and refused to defend, settlement offers arent' a prerequisite to establish a cause of action for bad faith.  An offer also need not be in writing.  An oral demand is sufficient in circumstances where liability is clear and damages are in excess of availble policy limits.  If you have been in a car accident and sustained serious injury, contanct a West Palm Beach accident attorney immediately to inure you get the compensation you deserve.