Bad Faith Sentinel

Standing guard on developments in the law of insurance bad faith around the country

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By: Saul Ewing Arnstein & Lehr

Latest from Bad Faith Sentinel - Page 2

Eastern District of Kentucky Grants Insurer’s Motion for Summary Judgment, Agreeing that Insured Made a Material Misrepresentation in his Claim

Lawrence Proctor submitted a claim to GEICO for damage to his RV that he claimed was caused by a January 6, 2015 motor vehicle accident. Proctor’s policy provided compensation for either the actual cash value of the damage property at the time of the loss or the amount necessary to repair the damaged property to its pre-loss condition. The policy specifically excluded compensation to any person who “knowingly conceals or misrepresents any material fact or circumstance” related to a claim.

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Continue Reading Eastern District of Kentucky Grants Insurer’s Motion for Summary Judgment, Agreeing that Insured Made a Material Misrepresentation in his Claim

Saul Ewing Blogs | N.D. of Mississippi: Insured’s Claim that Insurer Acted in Bad Faith by Failing to Disclose its Practice of Depreciating Labor Costs Survives Motion to Dismiss
Continue Reading N.D. of Mississippi: Insured’s Claim that Insurer Acted in Bad Faith by Failing to Disclose its Practice of Depreciating Labor Costs Survives Motion to Dismiss

District of Idaho Grants Summary Judgment for Insurer on Bad Faith Claim Where Insured’s Claim for Policy Benefits Was “Fairly Debatable”

Becca Franco was involved in a car accident in 2015.  Franco submitted a claim to her insurer, State Farm, for underinsured motor vehicle and medical payment benefits.  Sixteen months later, Franco filed suit against State Farm asserting breach of contract and bad faith claims.  State Farm moved for summary judgment on her bad faith claim.
The court granted State Farm’s motion in Franco v. State Farm Mutual Automobile Insurance Company, No. 4:17-cv-00228-DCN (D. Idaho Aug. 7, 2018).  The

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Continue Reading District of Idaho Grants Summary Judgment for Insurer on Bad Faith Claim Where Insured's Claim for Policy Benefits Was “Fairly Debatable”

Eastern District of Pennsylvania Dismisses Statutory Bad Faith Claim Against Insurer’s Claims Adjuster and Denies Motion to Remand

Steven Reto was injured in a car accident in 2014.  After the underlying liability claim settled with the driver who caused the accident, the Retos filed a claim for underinsured motorist benefits with their insurer, Liberty Mutual.  Sometime thereafter, the Retos filed suit in state court against Liberty Mutual and the claims adjuster who handled their claim, asserting statutory bad faith and other causes of action.  Liberty Mutual removed the case to federal court, contending that its claims adjuster was fraudulently joined

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Continue Reading Eastern District of Pennsylvania Dismisses Statutory Bad Faith Claim Against Insurer’s Claims Adjuster and Denies Motion to Remand

Insurer’s Failure to Conduct a “Proper Forensic Investigation” Before Denying Coverage for Destroyed Poultry House Not Bad Faith

After heavy snow destroyed a Slaubaugh Farm poultry house in Delaware, the farm called on its insurer to cover its loss.  After its claim was denied, the farm sued the insurer, alleging bad faith denial of coverage under Delaware law.  The Superior Court of Delaware, in Re: Slaubaugh Farm, Inc. v. Farm Family Cas. Ins. Co., No. CV S16C-06-033 ESB, 2018 WL 3559252 (Del. Super. Ct. July 23, 2018),  found that even though it had not conducted a “proper forensic investigation,” the

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Continue Reading Insurer's Failure to Conduct a “Proper Forensic Investigation” Before Denying Coverage for Destroyed Poultry House Not Bad Faith

N.D. of California: A Good Faith Dispute Over Coverage Not Enough to Dismiss Bad Faith Counterclaim

Great American Ins. Co. v. Quintana Homeowners Assoc. et al., 2018 WL 3632111 (N.D. Cal. July 31, 2018) (slip op.), began as a simple declaratory judgment action by Great American seeking to affirm its coverage position that it did not owe its insured, the Quintana Homeowners Association, a defense or indemnity pursuant to its umbrella “follow form” policy for an underlying real estate litigation involving the Association.  However, the Association counterclaimed for, among other things, breach of the duty of good faith and a

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Continue Reading N.D. of California: A Good Faith Dispute Over Coverage Not Enough to Dismiss Bad Faith Counterclaim

Arizona Worker’s Comp. Carriers: Enforce Your Lien, But Offer to Reduce it, Too

The Arizona Supreme Court, in Twin City Fire Ins. Co. v. Leija, —  P.3d — , 2018 WL 3651026 (Ariz. Aug. 2, 2018), affirmed worker’s compensation insurance carriers’ ability to enforce a statutory lien against beneficiary recovery in third party tort settlements, and avoid bath faith claims by beneficiary-insureds.  This case arose out of the Leija family’s tort suit against third party defendants who contributed to Mr. Leija’s death which befell him while on the job.  During settlement negotiations with the third-party defendants, Twin City asserted its

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Continue Reading Arizona Worker’s Comp. Carriers: Enforce Your Lien, But Offer to Reduce it, Too

District of Connecticut Denies Motion to Dismiss in Faulty Concrete Case, Leaving Open the Question of the Scope of “Sudden” and “Entire Collapse” Policy Provisions

The District Court for the District of Connecticut denied Allstate’s motion to dismiss its insureds’ breach of contract and statutory bad faith claims, finding that the cost to fix damage to the concrete foundation of the insureds’ home may be covered under their policy’s collapse provisions. The issue of collapse coverage has been closely followed in Connecticut because as many as 35,000 homes may be at risk of structural unsoundness or collapse due to defective

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Continue Reading District of Connecticut Denies Motion to Dismiss in Faulty Concrete Case, Leaving Open the Question of the Scope of “Sudden” and “Entire Collapse” Policy Provisions

Saul Ewing Blogs | Western District of Pennsylvania Denies Cross-Motions for Summary Judgment Where Disputed Facts Exist on Claims of a “Low-Ball” Initial Settlement Offer and Unreasonable Delay in Tendering Policy Limits

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Continue Reading Western District of Pennsylvania Denies Cross-Motions for Summary Judgment Where Disputed Facts Exist on Claims of a “Low-Ball” Initial Settlement Offer and Unreasonable Delay in Tendering Policy Limits

Baltimore citizens may recall the salacious circumstances of the underlying action giving rise to Hussy v. Hous. Auth. of Baltimore City, 2018 WL 1947049, *8-9 (D. Md. Apr. 24, 2018), under which Mr. Hussy, among other maintenance workers at the city’s Gilmor Homes property, was indicted for soliciting sexual favors from tenants in exchange for repairs.  Mr. Hussy, in addition to the criminal charges against him, was also sued civilly.  Mr. Hussy expected that Housing Authority Risk Retention Group (“HARRG”) would provide coverage for the legal fees arising out of his legal troubles.  HARRG, however, denied coverage to Mr. Hussy…
Continue Reading Summary Judgment for Maryland “By the Book” Insurer on Bad Faith Claim