Smith v. Standard Guar. Ins. Co.
| Decision Date | 20 May 1983 |
| Docket Number | No. 82-1378,82-1378 |
| Citation | 435 So.2d 848 |
| Parties | Charles SMITH, Appellant, v. STANDARD GUARANTY INSURANCE COMPANY, Appellee. |
| Court | Florida District Court of Appeals |
David W. Miner, Bradenton, for appellant.
No appearance for appellee.
Appellant (Smith) sued appellee (Standard) in 1981 for compensatory and punitive damages resulting from failure to pay a collision loss under Smith's policy with Standard. Smith contends that the court erred in directing a verdict against him on his claim for punitive damages.
At best, Standard's handling of Smith's claim was bungling and arbitrary. In any event, it was sufficiently callous that a jury would be justified in concluding that Standard was guilty of bad faith. However, our Florida courts have consistently held that a suit for punitive damages will not lie against an insurance company for bad faith in failing to pay a first party claim. Industrial Fire & Casualty Insurance Co. v. Romer, 432 So.2d 66 (Fla. 4th DCA 1983); United States Fire Insurance Co. v. Clearwater Oaks Bank, 421 So.2d 783 (Fla. 2d DCA 1982); Travelers Insurance Co. v. Habelow, 405 So.2d 1361 (Fla. 5th DCA 1981); Shupack v. Allstate Insurance Co., 367 So.2d 1103 (Fla. 3d DCA 1979); Lumilite Industries, Inc. v. Southeast Life Insurance Co., 365 So.2d 1083 (Fla. 3d DCA 1979); Allstate Insurance Co. v. Gibbs, 340 So.2d 1202 (Fla. 4th DCA 1976); Midwest Mutual Insurance Co. v. Brasecker, 311 So.2d 817 (Fla. 3d DCA 1975); Baxter v. Royal Indemnity Co., 285 So.2d 652 (Fla. 1st DCA 1973); cf. Evans v. Florida Farm Bureau Casualty Insurance Co., 384 So.2d 959 (Fla. 1st DCA 1980) (); contra Escambia Treating Co. v. Aetna Casualty & Surety Co., 421 F.Supp. 1367 (N.D.Fla.1976). Unlike the fiduciary relationship involved in the defense of a liability claim, a collision carrier and its insured occupy the status of debtor and creditor. Baxter v. Royal Indemnity Co. Of course, a successful first party claimant can obtain the payment of his attorney's fees under section 627.428, Florida Statutes (1981), and the Insurance Commissioner may invoke sanctions for insurance company misconduct.
Standard's conduct did not rise to the level of deliberate, overt and dishonest dealings which might constitute an independent basis for punitive damages. Saltmarsh v. Detroit Automobile Inter-Insurance Exchange, 344 So.2d 862 (Fla. 3d DCA 1977); see Butchikas v. Travelers Indemnity Co., 343 So.2d 816 (Fla.1976). Therefore, the...
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