Armstrong v. Allstate Indemnity Co.

This cause is before us on appeal from an order of final summary judgment in favor of appellee Allstate Indemnity Company (“Allstate”). We reverse and remand for further proceedings.

Under Florida law, where an insured settles with a third-party tortfeasor in violation of a nonsettlement provision, the insurer is presumed to have been prejudiced. Watherwax v. Allstate Ins. Co., 538 So.2d 108, 109 (Fla. 2d DCA 1989); General Accident Insurance Co. v. Taplis, 493 So.2d 32 (Fla. 5th DCA 1986). However, this is a rebuttable presumption, with the burden on the insured to show that the breach did…