Insured’s Bad Faith Claim Must Go To Arbitration, Federal Judge Rules

Mealey's (October 9, 2015, 11:17 AM EDT) -- SAN DIEGO — Dismissal of an insurance breach of contract and bad faith lawsuit is proper because an insured is first required to bring his claims to arbitration under the arbitration provision of the insurance policy, a federal judge in California ruled on Sept. 25 (David Peffer v. Philadelphia Indemnity Co., No. 14-2980, S.D. Calif.; 2015 U.S. Dist. LEXIS 129531).

(Order available. Document #07-151012-001R.)

David Peffer was a whistleblower who reported unlawful conduct of the executive director of his employer, Utilities Consumer Action Network (UCAN). In...
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