Eleventh Circuit Affirms Summary Judgment For UIM Insurer In Alabama Bad Faith Case

• Published date: 27 September 2022
• Law Firm: Butler Snow LLP
• Author: Mr A. David Fawal

In a recent unpublished opinion, the 11^th Circuit upheld summary judgment for an auto insurer on claims of breach of contract, bad faith and outrage stemming from an underinsured motorist (UIM) claim. Voss v. State Farm Mut. Auto. Ins. Co., No. 22-10243 (11^th Cir. Aug. 17, 2022). The case arose from Alabama's unique UIM case law allowing a UIM insurer to "front" or advance an alleged tortfeasor's settlement offer, forcing the UIM insured to prove entitlement to UIM policy proceeds, through showing liability by the tortfeasor and the amount of damages.

In Voss, after noting a dispute as to liability, State Farm followed the procedure dictated by the Alabama Supreme Court in Lambert v. State Farm Mut. Auto. Ins. Co., 576 So. 2d 160 (Ala. 1991), fronted the other driver's low limits...