Lexington Insurance and Attorneys Sued for Disclosing Confidential Mediation Information, Bad Faith
Mintz Truppman successfully sued Lexington for a client whose home was damaged by a sewage leak. A settlement was reached and the homeowner’s insurance claim was paid. Lexington stipulated to Mintz Truppman’s entitlement to attorney’s fees, however, failed to pay any fees, despite agreeing that
“Lexington and Cozen used Mintz’s confidential mediation communication in their argument to the Court, in an attempt to reduce Mintz Truppman’s fee -- exactly what the mediation confidentiality statute was meant to prevent,” said attorney
Fla. Stat. ' 44.405 provides that no mediation communication shall be disclosed and Fla. Stat. ' 44.406 provides civil remedies for such violation, with limited exceptions, not applicable. “Insurance companies and their law firms need to understand that there are consequences for violating the law,” Mintz said.
The lawsuit seeks equitable relief and compensatory damages as well as attorney’s fees, and contains counts for Declaratory Relief, Breach of the Mediation Contract, Conspiracy to Violate Florida’s Mediation Confidentiality and Privilege Act, Bad Faith/Unfair Claims Practices and Fraud.
The lawsuit includes bad faith, as Lexington made no attempt in good faith to pay or settle the attorney’s fee and cost claim, and Mintz Truppman claims Lexington’s actions were willful, wanton, malicious, and solely for its own profit motive.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170405005427/en/
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