This dispute arose from a fire at Billy the Kid's Buffet on April 15, 1994-a restaurant owned by Talat Enterprises and insured by Aetna. Talat and Aetna disagreed over the cost of the damages, and in September 1994 Talat filed for bankruptcy and sued Aetna for its losses. The bankruptcy judge ordered an appraisal of damages, which set the losses at $331,930.47. Aetna paid this amount. Talat then sued Aetna for damages over and above its insured losses, allegedly caused by Aetna's bad-faith refusal to pay covered losses until ordered to do so. The federal trial judge dismissed the claim and Talat appealed to the Eleventh Circuit Court of Appeals, which certified a question to the Florida Supreme Court.