Bad Faith Claim Allowed To Stand In Directors, Officers Liability Coverage Suit

(May 18, 2016, 9:53 AM EDT) -- LOS ANGELES — Finding that a reasonable juror could find that an insurer failed to conduct an adequate investigation before denying directors and officers liability coverage for a nonprofit mutual-benefit corporation insured, a California federal judge on May 4 denied the insurer’s motion for summary judgment as to the insured’s claims for bad faith and punitive damages (Market Lofts Community Association v. National Union Fire Insurance Company of Pittsburgh, Pa., No. 15-03093, C.D. Calif.; 2016 U.S. Dist. LEXIS 64014).

(In chambers order available. Document #13-160519-012R.)...
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