Eversheds Sutherland 11th Circuit Business Blog
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Settlement Release Negotiations and Actions of Third-Party Claimants Are Both Relevant in Bad Faith Actions

In Pelaez v. Government Employees Insurance Co., 2021 U.S. App. LEXIS 28312 (11th Cir. Sept. 20, 2021), the Eleventh Circuit upheld summary judgment for GEICO in a Florida bad faith case. Merely offering an overbroad release to a third-party claimant was insufficient to establish bad faith in the totality of the circumstances, which included GEICO’s repeated invitations to the...

STOLI Invalidation Upheld, Issues Certified to Delaware Supreme Court

STOLI – Stranger-Originated Life Insurance – was the subject of the court’s decision in Estate of Malkin v. Wells Fargo Bank, NA, 2021 Westlaw 2149344  (11th Cir. May 27, 2021). Judge Beverly Martin authored the court’s opinion, which affirmed a Florida district court’s invalidation of the life insurance policy at issue but certified questions relating to defenses and a counterclaim to...

Automobile Insurer’s “Lessor Liability Endorsement” Is Not Illusory

An automobile insurer’s “Lessor Liability Endorsement” is not illusory, notwithstanding the fact that federal law bars claims of vicarious liability against vehicle lessors, because the endorsement imposes upon the insurer a duty to defend lessors against vicarious liability claims.  Hallums v. Infinity Ins. Co., 2019 WL 6872507 (11th Cir. Dec. 17, 2019). The plaintiffs entered into...

Denial of Coverage for Antitrust Claim Under Executive Liability Insurance Policy Upheld

In Crowley Maritime Corp. v. National Union Fire Insurance Co. of Pittsburgh, 2019 WL 3294003 (11th Cir. July 23, 2019), the Eleventh Circuit affirmed a denial of insurance coverage under an executive and organization liability insurance policy.  Crowley Maritime Corporation (“Crowley”) carries freight between the United States and Puerto Rico, and purchased liability insurance from...

Court Revives Challenge to Stranger-Originated Life Insurance Policies (STOLIs)

In Sun Life Assurance Co. of Canada v. Imperial Premium Finance, LLC, 2018 WL 4443054 (11th Cir. Sept. 18, 2018), the Eleventh Circuit reversed the dismissal of fraud and breach of contract claims related to the sale of life insurance policies to strangers to the insureds.  Sun Life Assurance Company sold life insurance to senior citizens, who, in some cases, obtained premium financing...

Split Panel Upholds Dismissal of Force-Placed Insurance Claims Under Filed-Rate Doctrine

Last week, a split panel of the Eleventh Circuit upheld the dismissal of a class action over “force-placed insurance” under the filed-rate doctrine.  Patel v. Specialized Loan Servicing, LLC, 2018 WL 4559091 (11th Cir. Sept. 24, 2018). The “force-placed insurance” in question concerns the residential mortgage market.  A typical mortgage contract requires the borrower to obtain hazard...

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