The Florida Appeals Court recently ruled that in insurance claim disputes, plaintiff lawyers must not imply malicious behavior by emphasizing the delay in the insurance company’s handling, so as not to prejudice the jury. The ruling overturned the previous $47,000 award made by the Broward County Circuit Court to homeowner Naze, holding that the plaintiff’s lawyer’s repeated accusations during the trial of Global Property Insurance Company for not promptly allocating adjusters and repeatedly demanding documents were irrelevant to the core issue of the case – whether the policy exemption clause was applied – and might mislead the jury. The court, citing a similar precedent from 2018, pointed out that a jury should not award compensation merely for the negligence of an insurance company’s work, unless a malicious claim has been independently established.
Global Insurance argued that Naze failed to provide key documents such as the plumber’s receipt as required and did not complete the submission of materials before the lawsuit. The appellate court held that the court of first instance allowing these irrelevant pieces of evidence to enter the lawsuit had damaged the reputation of the insurance company and might affect the fairness of the judgment. Although Judge Bidwell emphasized that no guidelines for malicious charges had been issued to the jury, the appellate court still ruled that the plaintiff’s lawyer’s debate had crossed the line and requested a retrial. Judge Ed Artau raised an objection, arguing that the evidence could be used to refute the insurance company’s defense, but it was not supported by a majority.
This case is regarded as another legal victory for insurance companies in Florida. In 2022, the state has passed reforms to raise the threshold for malicious claims, requiring that a breach of contract by an insurance company must be ruled before a malicious lawsuit can be filed. However, some plaintiffs still attempt to delay exerting pressure by accusing the insurance company. This judgment further clarifies that the issue of claim processing efficiency cannot be the core point of dispute in litigation, unless it directly involves malicious claim procedures. Lawyers for Global Insurance Company did not comment on the verdict.
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