Federal Judge Holds Insurer’s ‘Fairly Debatable’ Defense Precludes Bad Faith Claim

(January 27, 2016, 10:54 AM EST) -- SALT LAKE CITY — Under the “fairly debatable” defense, an insurer is entitled to summary judgment on a bad faith claim with regard to denial of an insured’s supplement claim to windstorm damage, a Utah federal judge ruled Jan. 25 (Pheasantbrook Home Owners Association v. The Travelers Indemnity Co., No. 14-00056, D. Utah; 2016 U.S. Dist. LEXIS 8414).

(Memorandum decision and order available. Document #69-160205-009Z.)

Pheasantbrook Home Owners Association (PHOA) sued The Travelers Indemnity Co., asserting claims for breach of a contract of insurance and breach...
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