In Allen v. State Farm Fla. Ins. Co., No. 2D15-3114 (Fla. 2d DCA June 10, 2016), Plaintiffs filed suit against State Farm Florida Insurance Company and Federal Insurance Company relating to a sinkhole claim. Plaintiffs subsequently entered into a settlement agreement with Federal Insurance Company. State Farm requested information concerning the settlement and moved to compel the information. The trial court granted State Farm’s request and ordered the Plaintiffs to provide details as to the settlement agreement.

The Plaintiffs filed a writ of certiorari. In response, State Farm argued that disclosure of the settlement agreement is warranted to avoid a double recovery, for purposes of its setoff defense, and to aid it in assessing its settlement options. The Second District granted the Plaintiffs’ petition and quashed the discovery order. The Court reasoned that “it is premature to disclose the settlement when it is not admissible in evidence and would not lead to admissible evidence as to liability.” The Court explained that if State Farm is not found liable, there would be no need to disclose the settlement agreement. State Farm did not establish that the settlement amount with Federal was relevant to defending its liability and the jury’s determination of damages.

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