Orline M. Sidman v. Travelers Casualty and Surety Company of America

JILL PRYOR, Circuit Judge:

The issue before us is whether Travelers Casualty and Surety is bound by a settlement agreement between its insured, Cul-breath Isles Property Owners Association, and Phyllis Kirkwood, settling Kirkwood’s claim for attorney’s fees against Culbreath but stipulating that Kirkwood would not enforce the resulting consent judgment against Culbreath. Under Florida law, such agreements are unenforceable against insurers if tainted by fraud or collusion. To determine whether fraud or collusion exists, we look to whether the settlement amount was unreasonable and whether the…