Time Limit Demands and Interpleader

Time Limit Demands & Interpleader

Bad faith exposure often begins long before a lawsuit is filed. A single demand letter, settlement opportunity, communication breakdown, or missed investigative step can create substantial extra-contractual exposure for insurers and insureds alike. Our dedicated Time Limit Demands team ensures that no risk gets missed. Led by Managing Partner Dan Santaniello, who has testified as an expert witness on Florida bad faith law, our team provides a best practices approach and strategic guidance on time limit demands (“TLD”), policy limit tenders (“tenders), global settlement conferences (“GSC”), and bad faith avoidance protocols. We assist both insurers and insureds in evaluating exposure, documenting decision-making, preserving defenses, and implementing strategies designed to minimize bad faith risk and increase the likelihood of settlement.

Navigating Florida's New Bad Faith Landscape

Florida's Tort Reform fundamentally changed bad faith. The new law imposes reciprocal good-faith obligations on claimants and their counsel, establishes a 90-day safe harbor period for insurers, and requires claimants to provide sufficient information to evaluate claims before bad faith exposure may arise. Despite these reforms, significant legal risk and uncertainty remains. Plaintiffs continue to challenge the scope of the new statute and devise ways to demand insurers to pay extra-contractual monies.

TLD Team

Under Florida's traditional bad faith framework, insurers may face exposure even when no formal demand has been made. Tort reform now requires “notice” accompanied by “sufficient evidence”. Our TLD team backs up the handling attorney on all TLDs. Best practices are established and executed. Our motto, “no demand gets left behind.” Our TLD team evaluates all demand packages, settlement conditions, release requirements, insurance disclosure obligations, and communications with claimants' counsel to identify potential "bad faith setup" scenarios. We assist in developing and executing tender strategies designed to maximize the likelihood of acceptance while minimizing unnecessary disputes over technical conditions, releases, disclosure requirements, or other issues frequently raised in bad faith litigation. Every communication, deadline, and strategic decision is carefully documented to create a defensible record of compliance with Section 624.155, Florida Statutes.

Powell Doctrine

The Powell Doctrine recognized circumstances where an insurer may have an affirmative duty to initiate settlement negotiations when liability is reasonably clear and damages are likely to exceed available coverage. The bottom line is that these cases require proactive management, not reactive handling.

Our Tender Watch™ protocol is designed to identify potential excess exposure early, develop a documented settlement strategy, maintain meaningful communication with all stakeholders, and create a clear record of investigative and settlement efforts. By engaging before formal demands are made, carriers and insureds can make informed, strategic decisions rather than reacting under artificial deadlines.

Global Settlement and Interpleader

Few bad faith scenarios present greater challenges than multiple claimants competing for limited insurance proceeds. These losses often involve competing interests, catastrophic injuries, and insufficient coverage to fully compensate all claimants.

Our team develops comprehensive global settlement strategies designed to maximize opportunities for resolution while protecting the interests of insurers and insureds. We coordinate global mediations, offer binding arbitration, evaluate claim prioritization issues, facilitate negotiations among competing claimants.

Where global resolution cannot be achieved under Florida's post-tort reform framework, and if we represent the insurer, we have a dedicated Interpleader Team that assists in developing and executing interpleader strategies and other mechanisms designed to minimize bad faith exposure while ensuring equitable treatment of all claimants.

A Strategy-Driven Approach to Bad Faith Prevention

Bad faith claims are rarely won or lost because of a single act. They are often decided based upon the totality of the insurer's conduct, communications, documentation, and decision-making process.

Our team employs a multidisciplinary, decision-tree approach that brings together claims professionals, coverage counsel, trial lawyers, monitoring counsel, and excess exposure specialists to evaluate risk at every stage of the claim. We help clients develop and document strategic decisions, preserve defenses, and create a clear record demonstrating fairness, reasonableness, and good-faith conduct.

As Florida bad faith law continues to evolve, insurers and insureds need more than a checklist. They need a dedicated team that understands both the legacy doctrines that shaped Florida bad faith law and the new statutory framework that will define its future.

For assistance, Contact Daniel Santaniello.

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