Appellate
Appellate Court Rules Progressive Must Face $50M Bad Faith Lawsuit
October 2020 - The Eleventh Circuit Court of Appeals ruled that Progressive American Insurance Co. must face a $50 million bad faith lawsuit stemming from a 2013 car crash that left a Florida woman and her four children severely injured.
The appeals court reversed a Florida federal judge’s summary judgment in favor of Progressive, holding that a jury could find the insurer failed to act in good faith to settle the claims within the policy limits.
The case involves policyholder Nathan Pyles, whose vehicle struck Yolanda Aldana’s car, causing serious injuries to her and her children, including a brain injury to her youngest.
After a jury awarded the Aldanas more than $50 million, the family pursued a bad faith claim against Progressive for failing to proactively settle within the policy limits.
Stephen F. Rosenthal of Podhurst Orseck represents the Aldanas. He praised the ruling, noting that it reaffirms the importance of a jury trial and holds insurers accountable for failing to protect their policyholders from excess judgments.