Judge: Bad Faith Claim In Storm Damage Suit Preempted By Illinois Insurance Law

Mealey's (April 16, 2020, 2:14 PM EDT) -- EAST ST. LOUIS, Ill. — A federal judge in Illinois on April 14 ruled that although an insured’s claims in a breach of contract and bad faith lawsuit against its property insurer are not time-barred, dismissal of its breach of an implied covenant of good faith and fair dealing claim is necessary because a provision of the Illinois Insurance Code preempts claims for extracontractual damages “based on common law breach of the duty of good faith” (KMK Metal Fabricators Inc. v. Federated Mutual Insurance Co., No. 19-844, S.D. Ill., 2020 U.S. Dist. LEXIS 65030)....