Palm Beach County | Florida | Bad Faith |Car accident Lawyer

What evidence is discoverable when pursuing a bad faith claim against an insurance carrier?

Depending if the case is for compensatory or punitive damages, the evidence needed will differ to establish that the insurance company has acted in bad faith in denying an insurance claim. In the compensatory damages scenario, the evidence must be specific enough that it contains every correspondence made with the insurer that will support the plaintiff’s position. This correspondence will include the demand letter, notice form and narrative and all typed memos that followed conversations with the adjuster. The insurance company’s CLAIM FILE IS DISCOVERABLE for both first party and third party bad faith plaintiffs, subject to attorney-client privileges. The case that decided this issue overturned an earlier ruling by the court that disallowed discovery of the claim file because the insured and insurer were in a quasi-adversarial relationship, rather than a fiduciary relationship. In Allstate Indemnity Co v. Ruiz, 30 FLW S219, S222 (Fla.2005), the court decided that it would not be legally conscionable to deny access rights to an insured that would establish their cause of action and also serve to evaluate a bad faith claim. Furthermore, it seemed that the Legislature has imputed to insurance companies a duty to deal fairly and act in good faith and the denial of such important information seems contrary to these standards. In pursuing a bad faith claim against an insurance company, your Palm Beach County accident attorney should pay particular attention to the notes of the adjuster but also those of the supervisors. In pursuing punitive damages against the insurer, the scope of the discovery becomes broader because this is more difficult to prove. The plaintiff has to prove that the method in which the insurance company operated was a course of conduct so this must allow the plaintiff to receive evidence which dates back for a reasonable amount of time. Depending on the magnitude of the claim, the time frame allowable will probably differ. The files of the adjuster may lead the plaintiff attorney to present the judge evidence that the court should allow broader discovery. Possibly, there are notes that indicate that an official higher up is dictating the procedure by which claims are settled. Another source of information that your Palm Beach County accident attorney should investigate is with the Department of Financial Services, because they keep a log of complaints and statutory notices for every insurance carrier. Of course, evidence from the department can be used for the “business practice” requirement.