In a recent case, the Florida Supreme Court issued an opinion in an appeal involving a certified question about whether a personal injury damages award must be reduced by a payment the plaintiff received to settle a bad faith claim against his uninsured motorist insurance carrier. The two laws at issue in the case were sections 768.041(2) and 768.76(1), Florida Statutes (2012).
The Respondent/plaintiff (Respondent) was badly injured in a car crash. Following the accident, he sued the Petitioner/defendant (Petitioner) bringing a vicarious liability claim based on the Petitioner’s co-ownership of the other automobile involved in the crash. Additionally, the Respondent also sued his own uninsured motorist insurance carrier to recover policy benefits for statutory bad faith damages. The Respondent and his insurer settled prior to the trial for $4 million. The subsequent trial against the Petitioner resulted in a $30 million jury verdict for the Respondent. The Petitioner then asked the trial court to set off the pre-trial $4 million insurance settlement against the damages award, but the trial court denied the motion.
On appeal, the Second District Court of Appeals affirmed the denial of the setoff request. Additionally, it certified a two part question: Is a settlement payment made by an uninsured motorist insurer to settle a first-party bad faith claim subject to setoff under section 768.041(2) or a collateral source within the meaning of section 768.76? The appeals court answered no to both parts of the question, ultimately holding that neither statute authorized a setoff in the present case. The appellate decision explained that writing on a blank slate, it would have found the Petitioner entitled to a setoff under section 768.041(2), but it decided that this Court’s case law precluded that result.