When you entrust your case to an attorney, you expect them to handle every aspect meticulously. This is especially true when dealing with insurance disputes where bad faith claims are involved.
In Florida, one crucial step in pursuing a bad faith insurance claim is filing the civil remedy notice with the state’s Department of Financial Services (DFS) and give your insurer 60 days to respond to it.
This procedural requirement is not just a formality. Failure to file a civil remedy notice can result in your case being dismissed. Even worse, you could end up paying a penalty directly to the insurance company.
Understanding bad faith insurance claims
Before delving into the specifics of the civil remedy notice, let’s clarify what constitutes a bad faith insurance claim.
Insurance bad faith occurs when an insurance company does not treat its policyholder’s claim with fairness and honesty. It may refuse to reach a reasonable settlement even after the company’s liability is reasonably clear.
This could include unreasonable delays in handling your claim, failing to conduct a proper investigation or refusing entirely to pay a valid claim without a reasonable basis.
When a policyholder’s claim is unfairly denied or delayed, they have the right to bring a bad faith lawsuit against the insurer.
A successful bad faith claim means the insurance company would be required to pay your claim in full. However, you could claim damages for any financial losses or emotional distress you suffered as the result of the insurance company’s bad faith. And, in some cases, the insurance company would be required to pay punitive damages and/or reimburse you for your attorney’s fees and other costs. A lot is at stake.
The role of the civil remedy notice
Under Florida Statute 624.155, anyone who intends to file a lawsuit against an insurer for bad faith must first file a civil remedy notice with the Department of Financial Services (DFS) via its online Civil Remedy filing system.
The filing party must wait at least 60 days for the insurance company to respond before initiating legal action. The purpose of this is to give the insurer a chance to address the complaint and rectify any issues outlined in the notice.
The consequences of failing to file the civil remedy notice
Failure to file this notice can have significant repercussions. Without it, the court may simply dismiss your lawsuit or severely limit the potential damages recoverable.
Unfortunately, you might end up having to pay the insurance company’s attorney fees and court costs and, in some cases, additional damages.
Missing this step might indicate malpractice
If your attorney neglected to file the required civil remedy notice in your bad faith claim, this oversight might not just have been a minor error. Sometimes, missing a step or a deadline can constitute legal malpractice.
An attorney’s failure to adhere to a statutory requirement like this one can jeopardize your case and potentially cause you financial harm. If it does, you deserve to know what happened. You also deserve compensation for what you lost due to any legal malpractice.
Set up a legal malpractice consultation
If you suspect that your case was adversely affected by such an omission, it may be prudent to consult with a legal malpractice attorney.
A thorough review by a qualified lawyer can help determine if there was negligence involved and whether you have grounds for a malpractice claim against your original attorney.
Get more information
Determining if you have experienced legal malpractice can be a challenge without professional guidance.
If you’re concerned that your attorney’s failure to file a civil remedy notice harmed your case, consider reaching out to a lawyer with experience with legal malpractice claims.