The issue of the appeal concerned whether the causal element of a bad faith application in favour of the Florida law had been met by the $30 million approval order. The eleventh arrondissement upheld the District Court`s finding that an approval order is not an excessive judgment and therefore does not satisfy the causal element of an allegation of bad faith. In the confirmation of summary judgment for the insurer, the Court first took note of the general rule that the case is proven only by excessive judgment, as it prevents the courts from incompetent – because without excessive judgment, there is no case or dispute for the court. The Court then considered the three exceptions to this general rule and quickly considered them to be inexhaustible: a Cunningham agreement (in which third-party insurers and aggrieved third parties agree to attempt the bad faith case first and the insurer accepts to pay insurance limits if no bad faith is found), a Coblentz agreement (in which third parties and aggrieved policyholders settle after insurance coverage and refuse to pay insurance limits if an insurer is aggrieved by bad faith by a non-insurer. The judge excluded any evidence of the “possibility of compensation” letter because he accepted the insurer`s argument that he is not required to participate in such an agreement under Florida law. The jury listened only to the powell theory. The jurors found that the insurer had acted in bad faith by not complying with the insurance limit until 37 days after the accident, but found, in favour of the insurer, that there was no realistic possibility of settling the law within the limits of the insurance. As a result, the court issued the judgment for the insurer. The applicant then sued the policyholder. The insurer repeatedly followed the complainant`s lawyer to inquire about the $10,000 cheque, but did not receive a response.
More than a year and three months after the insurer offered the insurance limits, the applicant`s lawyer sent a letter to the policyholder for “transaction. The letter proposed an agreement between the applicant, the policyholder and the insurer to register a $150,000 acceptance order against the policyholder; and (2) determine the insurer`s liability for recovering damages beyond the insurance boundaries.