The Fourth District Court of Appeal ruled in favor of homeowners Wednesday in their bad-faith insurance case but cautioned the new interpretation may result in an abuse that the Legislature should review.
In a 12-page anonymous opinion from the full court, the Fourth District said an insurance company’s liability for coverage and the extent of damages must be determined before a bad-faith action becomes ripe. However, it is not necessary to determine whether an insurance company was liable for breach of contract.
