Collazo V. Progressive Select Insurance Company

Case Background

On August 7, 2023, Kevin Collazo filed an insurance lawsuit against Progressive Select Insurance Company for failing to settle his underinsured motorist claim in bad faith

The case was filed in the United States District Court, Southern District of Florida. The case was assigned to Judge K. Michael Moore and referred to Magistrate Judge Lauren Fleischer Louis. [Case number: 1:23cv22953]

Cause

Kevin Collazo resided and was domiciled in Miami-Dade County, Florida. Progressive, a foreign for-profit insurance company, was authorized to conduct business in Florida, including Miami-Dade County.

On or about June 27, 2019, Faris Hillaire was negligently operating a motor vehicle in Miami-Dade County when she collided with Mr. Collazo’s vehicle, causing the Crash. At the time, Mr. Collazo held uninsured/underinsured motorist (UM) coverage through Progressive, under Policy No. 922927309, with limits of $100,000.

As a result of the Crash, Mr. Collazo sustained significant and permanent injuries, leading to damages that clearly exceeded the policy’s coverage limits. He promptly reported the claim to Progressive and fulfilled all obligations under the policy.

On August 26, 2020, Mr. Collazo filed a Civil Remedy Notice under Fla. Stat. § 624.155. However, Progressive allowed the notice to expire without settling the claim or addressing the alleged violations.

In response to the Crash, Mr. Collazo filed a lawsuit on October 30, 2020, in the 11th Judicial Circuit Court in Miami-Dade County for damages. On December 30, 2020, Progressive removed the case to the United States District Court for the Southern District of Florida (Case No. 1:20-cv-25302-RNS).

On July 21, 2022, a jury in the Underlying Lawsuit awarded Mr. Collazo $844,220.18 in damages. Judgment was entered against Progressive the following day. On September 27, 2022, an amended judgment reduced the award to $834,220.18.

Damages

Collazo sought judgment against Progressive for all damages, including the unpaid amount of the amended final judgment, along with applicable statutory interest. He also requested compensatory damages.

Additionally, Collazo demanded reimbursement for all attorney’s fees and court costs incurred during the underlying lawsuit that had not been previously awarded. He further sought attorney’s fees and costs incurred in this action. Finally, Collazo asked for any further relief that the Court found just and appropriate.

Key Arguments and Proceedings

Legal Representation

  • Plaintiff(s): Kevin Collazo
    • Counsel for Plaintiff(s): Rochelle Wimbush | Stephen A. Marino, Jr. | Graciana Marie Berlin
  • Defendant(s): Progressive Select Insurance Company
    • Counsel for Defendant(s): Gary John Guzzi | Antonio DeJesus Morin

Claims

Collazo brought the claim of bad faith against Defendant Progressive. He claimed that Progressive had an ongoing duty to act fairly and honestly toward its insureds and to settle claims when it could and should have done so, considering all circumstances and with due regard for the insured’s interests.

Progressive was given multiple opportunities to settle Collazo’s claim within the Policy’s limits but failed to act. Instead, it made insufficient counteroffers that were far below the amount of Collazo’s damages.

By failing to fairly evaluate Collazo’s claim and timely pay the benefits owed under the Policy, Progressive violated Fla. Stat. § 624.155. It breached its duties by not settling the claim within the Policy limits when it could and should have done so, had it acted in good faith and with proper consideration of Collazo’s interests.

As a direct result of Progressive’s actions and inactions, Collazo suffered damages, which were quantified by a jury and reflected in the Amended Final Judgment.

Due to Progressive’s failure to act in good faith and its statutory violations, Collazo was forced to hire legal counsel to represent his interests in connection with the Policy and this lawsuit, agreeing to compensate them for their services.

Defense

Progressive asserted that the terms of the insurance policy and Florida law governed any duties it owed to its insured. It claimed that if no duty arose under the policy or Florida law for any part of Plaintiff’s claims, the complaint failed to state a valid cause of action, and therefore, Progressive was not liable.

In its second affirmative defense, Progressive argued it was entitled to a set-off for any sums paid or waived in connection with the Underlying Action.

Jury Verdict

On October 29, 2024, the jury returned a verdict in favor of the plaintiff, determining that Progressive had acted in bad faith by failing to settle the underinsured motorist claim when it should have.

On the same date, Judge K. Michael Moore entered a final entered judgment consistent with the verdict.

Court Documents:

Available upon request