In Cindy Vo v. Scottsdale Ins. Co., No. 1D2023-2228 (Fla.1st DCA Feb. 26, 2025), the First DCA held that the statutory changes in Fla. Stat. § 624.1551, which require “an adverse adjudication by a court of law that the property insurer breached the insurance contract and a final judgment or decree . . . rendered against the insurer,” cannot be applied retroactively to causes of action which accrued prior to the change.

The appellant, Cindy Vo, filed a claim with Scottsdale Insurance Company in 2020 for hurricane damage to her property. Scottsdale estimated the damage at $420.64, concluding there was no storm-related exterior damage causing the reported interior damage. Since this amount did not exceed the policy’s wind deductible, Scottsdale denied payment. Vo’s public adjuster later estimated damages at $38,584, prompting Scottsdale to engage an independent adjuster, who agreed with the initial assessment. Vo then filed a Civil Remedy Notice of Insurer Violations with the Florida Department of Financial Services, alleging breach of contract and bad faith claims handling. The dispute proceeded to appraisal, resulting in an award of $34,545.66, which Scottsdale paid after deducting the applicable hurricane deductible. The parties settled the case in 2021.

In March 2023, Vo filed a lawsuit seeking extracontractual damages under Florida’s bad faith insurance statutes, citing Scottsdale’s alleged unfair claims handling and statutory violations. Scottsdale moved to dismiss, arguing that a 2022 legislative amendment to § 624.1551 of the Florida Statutes required an “adverse adjudication” of contract breach before a bad faith claim could proceed. The trial court agreed and dismissed the case, ruling that Vo’s complaint failed to allege a court determination that Scottsdale had breached the contract or that a final judgment had been rendered against the insurer.

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