SHERMAN, Texas — The dismissal of an insured’s common-law bad faith claim does not warrant the dismissal of the insured’s claim for violations of the Texas Insurance Code because the insured did not concede that the insurer never acted in bad faith in handling the insured’s storm damage claim, a Texas federal judge said Aug. 5 in partially denying the property insurer’s motion for summary judgment.
DALLAS — A federal judge in Texas on July 22 dismissed without prejudice a senior claims specialist from an insured’s coverage lawsuit over its wind and hail damage and granted in part and denied in part the insurer’s motion for partial judgment on the pleadings, allowing two claims for violations of Texas Insurance Code to proceed.
HOUSTON — A Texas federal judge on Aug. 5 granted a homeowners insurer’s motion to dismiss insureds’ extracontractual claims in a storm damage coverage dispute after determining that the insureds failed to provide any facts to support the claims.
ATLANTA — A district court did not err in entering summary judgment in favor of an auto insurer because the auto insurer’s actions to settle a claim on behalf of its insured were reasonable and no jury could find that the auto insurer acted in bad faith in handling the claim against its insured, the 11th Circuit U.S. Court of Appeals said July 25.
SAN JOSE, Calif. — A California federal magistrate judge on Aug. 3 granted an auto insurer’s motion to dismiss insureds’ claims for breach of contract, bad faith, misrepresentation and fraud after determining that the insureds failed to show that they complied with the policy’s arbitration requirement and failed to allege facts in support of the misrepresentation and fraud claims.
TACOMA, Wash. — A Washington federal judge on Aug. 4 denied an insured’s motion to remand a breach of contract and bad faith suit after determining that the amount in controversy exceeds the federal jurisdictional minimum of $75,000.
NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on Aug. 1 affirmed a federal court’s ruling that no coverage is owed to insured restaurant owners for business losses incurred as a result of the governmental shutdown orders issued in the wake of the COVID-19 pandemic because the restaurants did not sustain a direct physical loss to their properties, affirming the lower court’s dismissal of the lawsuit seeking coverage and penalties for the insurers’ alleged bad faith denial of their coverage claim.
SCRANTON, Pa. — A Pennsylvania federal magistrate judge on Aug. 3 denied a motion to strike insureds’ bad faith allegations included in the insureds’ breach of contract claim after determining that the allegations are relevant to the dispute over the handling of the claim for underinsured motorist benefits; however, the magistrate judge said the request for attorney fees is premature and must be stricken.
NEWARK, N.J. — A New Jersey federal judge on July 28 denied motions for summary judgment filed by a professional liability insurer and assignees of an insured in a dispute over coverage for an underlying professional negligence claim after determining that questions of fact exist regarding whether the bad faith lawsuit filed by the assignees is timely pursuant to the applicable statute of limitations.
SEATTLE — A federal judge in Washington on July 28 held that an insurer’s denials of coverage for an underlying wrongful death claim “were not premised on reasonable grounds,” granting an airline company’s motion for partial summary judgment as to its extracontractual claims against the insurer for bad faith and violations of Washington's Insurance Fair Conduct Act (IFCA) and Consumer Protection Act (CPA).
CHICAGO — A trial court did not err in granting an insurer’s motion to dismiss an assignee’s bad faith suit because the assignee failed to show that the insurer acted in bad faith by refusing to settle an underlying personal injury suit filed against the insured within the policy limits and by exposing the insured to an excess judgment, a panel of the First District Illinois Appellate Court said Aug. 1.
ALBUQUERQUE, N.M. — Bifurcation of an insured’s breach of contract claim from the insured’s extracontractual claims in a roof damage coverage dispute is not warranted because the homeowners insurer will not be prejudiced if the claims are not bifurcated and judicial economy will not be served by bifurcating the claims, a New Mexico federal judge said Aug. 1.
OKLAHOMA CITY — A life insurance beneficiary’s claims for breach of contract and bad faith based on the life insurer’s rescission of a life insurance policy can proceed because issues of fact exist as to whether the insured misrepresented whether he used tobacco products within the year prior to the policy’s issuance, an Oklahoma federal judge said July 26.
NASHVILLE, Tenn. — A homeowners insurer did not breach its contract and act in bad faith in canceling an insured’s policy because the insurer was within its rights to cancel the policy based on the insured’s representation, whether true or not, that the rental property at issue was vacant, a Tennessee federal judge said July 19 in determining that the insurer owes no coverage for damages sustained to the rental property by a tornado.
DENVER — A Colorado federal magistrate judge on July 29 recommended dismissing a portion of statutory and common-law bad faith claims alleged against an auto insurer by insureds because the insureds failed to show that the insurer’s lack of an investigation into the insureds’ living situation constituted bad faith and failed to support the allegation that the insurer misrepresented the coverages afforded under the auto policy.
HOUSTON — A Texas federal judge on July 28 granted summary judgment in a bad faith case to an insurance company facing charges that it wrongfully denied a claim for damage to a garage allegedly caused by an explosion after it partially granted its motion to exclude two of the homeowner’s expert witnesses.
NEW ORLEANS — A district court did not err in finding that a disability insurer properly terminated a claimant’s benefits after five years because the policy phrase “any gainful occupation” is not ambiguous, the Fifth Circuit U.S. Court of Appeal said July 27.
CENTRAL ISLIP, N.Y. — In a July 22 docket order, a New York federal judge adopted a magistrate judge’s recommendation to grant a disability insurer’s motion for summary judgment, agreeing with the magistrate judge’s conclusion that the insurer properly rescinded the disability policy based on fraudulent and material misrepresentations made by the insured regarding a preexisting neck condition and that the insurer did not act in bad faith in handling the insured’s claim.
PITTSBURGH — A Pennsylvania federal judge on July 18 denied an insurer’s motion to dismiss a married couple’s claims for bad faith and breach of contract after it denied their claim for vehicular damages suffered at a repair shop and accused them of insurance fraud but agreed to dismiss the couple’s claims for defamation and intentional infliction of emotional distress.
LOS ANGELES — A federal judge in California on July 11 ruled that an insurer is not entitled to partial summary judgment on its claim that it is not obligated to reimburse an insured general contractor for costs incurred in underlying arbitration proceedings stemming from the contactor’s alleged failure to properly secure a building in advance of a hurricane for costs incurred before Feb. 5, 2020, because issues of fact remain as to whether the insurer was prejudiced by the contractor’s delay in notifying it of a counterclaim filed against the contractor.