Florida Law Update - Perrara v. United States Fidelity and Guarantee Company

The Supreme Court of Florida addressed an important bad faith issue in the Perrara v. United States Fidelity and Guarantee Company, matter on May 6, 2010.  The case came to the Supreme Court after the Eleventh Circuit certified the following question to the Supreme Court:

“May a cause of action for third-party bad faith against an indemnity insurer be maintained when the insurer’s actions were not a cause of the damages to the insured or when the insurer’s actions never resulted in exposure to liability in excess of the policy limits of the insured’s polices?”