Judge: Third Party Lacks Standing To Sue Insurer For Insurance Bad Faith

Mealey's (October 21, 2015, 2:14 PM EDT) -- BEAUFORT, S.C. — A federal judge in South Carolina on Oct. 19 granted in part and denied in part an insurer’s motion to dismiss, ruling that a third party cannot sue the insurer for bad faith because the insured never assigned the bad faith claim to the third party (Terrence Davis v. Liberty Mutual Insurance Co., No. 15-2818, D. S.C.; 2015 U.S. Dist. LEXIS 141659).

(Order available. Document #07-151026-024R.)

Terrence Davis sued Larry Tye in the Jasper County, S.C., Court of Common Pleas for injuries sustained...
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