## Facts

- Michael F. Bishop was injured in an automobile accident on April 12, 1991.
- At the time of the accident, Bishop was insured under three State Farm policies providing uninsured/underinsured motorist (UM) coverage.
- Bishop sued the alleged tortfeasor in February 1995.
- In March 1998, the tortfeasor’s insurer tendered its $300,000 policy limits.
- On March 10, 1998, Bishop sought State Farm’s consent to settle and asserted a UM claim; State Farm responded that the statute of limitations had expired.
- Bishop wrote again; State Farm reiterated that consent was “moot” because any UM claim was time-barred.
- Bishop settled with the tortfeasor and filed a declaratory judgment action seeking a ruling that he remained entitled to UM benefits because the policy language tolled limitations during the tort suit.
- The circuit court entered a final declaratory judgment for Bishop, concluding the policy language tolled the limitations period; State Farm appealed.

## Issues

1. Whether State Farm’s UM policy language prevented suit against the UM carrier until completion of the tort action, thereby tolling the statute of limitations.
2. Whether Bishop’s UM claim, first asserted in 1998 for a 1991 accident, was barred by Florida’s five-year statute of limitations for contract actions.

## Decision

- The appellate court reversed the declaratory judgment for Bishop.
- The court held the policy language did not preclude filing a UM action before the tort case concluded and therefore did not toll the limitations period.
- Because the limitations period was not tolled, Bishop’s UM claim was time-barred and State Farm owed no UM benefits.

## Legal Principles

- In Florida, a UM action is generally governed by the five-year limitations period for contract claims, running from accrual that is ordinarily treated as occurring at the accident date unless the policy requires delay in suing the UM carrier.
- Limitations may be tolled only where policy language contractually bars the insured from suing the UM insurer until the tort action is concluded (such as when a prior judgment against the tortfeasor is required).
- Policy terms stating the insured must be “legally entitled to collect” from the tortfeasor, or that the tortfeasor’s liability limits must be exhausted before an “award” may be entered against the UM carrier, do not toll limitations if the policy otherwise allows liability and damages to be determined within the UM proceeding.

## Conclusion

The court held that the UM policies did not require Bishop to wait for completion of the tort litigation before suing State Farm, so the statute of limitations was not tolled; Bishop’s UM claim asserted more than five years after the accident was barred.


State Farm Mut. Auto. Ins. Co. v. Bishop, 750 So. 2d 101 (Fla. 1st DCA 1999)