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Mealey's Insurance Bad Faith

  • April 03, 2020

    Auto Insurer Failed To Timely Remove Breach Of Contract, Bad Faith Suit

    RIVERSIDE, Calif. — A California federal judge on March 31 remanded a breach of contract and bad faith suit to state court because the auto insurer failed to timely remove the suit to federal court (Sean Stoddard v. Philadelphia Indemnity Insurance Co., No. 20-386, C.D. Calif., 2020 U.S. Dist. LEXIS 56833).

  • April 03, 2020

    9th Circuit Remands Bad Faith Suit To Allow Plaintiffs To File Amended Complaint

    PASADENA, Calif. — The Ninth Circuit U.S. Court of Appeals on April 2 determined than a bad faith suit against an auto insurer was properly dismissed; however, the panel remanded the suit to allow the plaintiffs the opportunity to amend their complaint (Ethan Volungis, et al v. Liberty Mutual Fire Insurance, No. 18-16600, 9th Cir., 2020 U.S. App. LEXIS 10411).

  • April 01, 2020

    Reinsurer:  11th Circuit Should Not Hear Appeal Over Arbitration Ruling

    ATLANTA — A reinsurer argues in a March 26 reply brief that the 11th Circuit U.S. Court of Appeals has no jurisdiction over insurers’ appeal of a “non-final” order to arbitrate their dispute for alleged bad faith refusal to pay their reinsurance claim regarding a construction defects case settlement (Builders Insurance, et al. v. Fletcher Reinsurance Co., No. 20-10969, 11th Cir.).

  • March 31, 2020

    Judge Dismisses Bad Faith Claim Against Life Insurer Over Cost Of Increase

    MIAMI — A Florida federal judge on March 30 dismissed a bad faith claim against a life insurer rather than abate that claim until a breach of contract claim is resolved in the lawsuit over a cost increase allegedly tied to captive reinsurance transactions that benefited the insurer’s corporate parent (Michael Foster, et al. v. Transamerica Life Insurance Co., No. 19-24969, S.D. Fla.).

  • March 31, 2020

    Business Owners Say Coverage Owed For Losses Stemming From Coronavirus Shutdown

    CHICAGO — A group of restaurant and movie theater owners and operators claim in a March 27 complaint filed in Illinois federal court that their insurer breached its contracts and acted in bad faith in denying the insureds’ claims for business interruption losses sustained as a result of the state-ordered shutdown of nonessential businesses in Illinois in the wake of the coronavirus pandemic (Big Onion Tavern Group LLC et al., v. Society Insurance Inc., No. 20-2005, N.D. Ill.).

  • March 30, 2020

    Extracontractual Claims Against Auto Insurer To Proceed, Judge Says

    SEATTLE — An insured who filed a claim for underinsured motorist benefits alleged sufficient facts in support of extracontractual claims against his auto insurer, a Washington federal judge said March 26 in denying the auto insurer’s motion for partial summary judgment (Daniel Hopkins v. Integon General Insurance Co., No. 18-1723, W.D. Wash., 2020 U.S. Dist. LEXIS 53311).

  • March 30, 2020

    Insurer Compelled To Provide Reinsurance Info In Bad Faith Lawsuit

    CHARLESTON, W.Va. — In a breach of contract and bad faith dispute, a West Virginia federal magistrate judge on March 25 compelled an insurer to produce reinsurance reports in its claim files regarding a fire loss to insureds’ car dealership (Mid-State Automotive, Inc., et al. v. Harco National Insurance Co., No. 19-407, S.D. W.Va., 2020 U.S. Dist. LEXIS 51727).

  • March 26, 2020

    Breach Of Contract Claim Fails, Bad Faith Claim Proceeds In Ammonia Leak Dispute

    ROCHESTER, N.Y. — A New York federal judge on March 25 determined that an insured’s breach of contract claim cannot proceed but said that the insured’s bad faith claim can proceed because questions of fact exist regarding the insurer’s investigation and handling of the insured’s claim for product contamination following an ammonia leak in its warehouse (SatisPie LLC v. Travelers Property Casualty Company of America, No. 17-6234, W.D. N.Y., 2020 U.S. Dist. LEXIS 51861).

  • March 26, 2020

    Magistrate Judge Recommends Denying Motion For Expenses In Bad Faith, Auto Suit

    BROOKLYN, N.Y. — A New York federal magistrate judge recommended denying a primary insurer’s motion for expenses related to the excess insurer’s failure to enter into evidence a number of requests for admission in a bad faith suit because the excess insurer demonstrated that it had reasonable grounds to believe that it might prevail on the issues included in the requests for admission (Ohio Casualty Insurance Co. v. Twin City Fire Insurance Co., No. 14-858, E.D. N.Y., 2020 U.S. Dist. LEXIS 50962).

  • March 25, 2020

    Insured:  USAA Acted In Bad Faith In Evaluation Of Auto Insurance Claim

    DENVER — An insurer acted in bad faith and breached the terms of an automobile insurance policy when it failed to properly evaluate an insured’s claim for underinsured motorist benefits after she was involved in an automobile accident, the insured argues in a March 23 complaint filed in Colorado state court (Marissa V. Ponder v. USAA Casualty Insurance Co., No. 20-783, Colo. Dist., Denver Co.).

  • March 24, 2020

    California Federal Magistrate Judge Stays Water Damage Coverage Suit

    SAN FRANCISCO — A California federal magistrate judge on March 22 granted a homeowners insurer’s motion to stay a water damage coverage suit after determining that the parties will not be prejudiced by a stay (Lawrence Lui, et al. v. State Farm Fire and Casualty Co., No. 19-6337, N.D. Calif., 2020 U.S. Dist. LEXIS 49946).

  • March 24, 2020

    Bifurcation Not Warranted In Bad Faith, Auto Dispute, Louisiana Federal Judge Says

    NEW ORLEANS — A Louisiana federal judge on March 23 denied an auto insurer’s motion to bifurcate a bad faith claim after determining that the insurer failed to carry its burden of proving that judicial economy would be served if the claims in the complaint are bifurcated (Jason Meador v. Starr Indemnity & Liability Insurance Co., No. 19-2378, E.D. La., 2020 U.S. Dist. LEXIS 49334).

  • March 24, 2020

    Court Should Abate Bad Faith Claim Against Life Insurer, Co-Trustees Say

    MIAMI — Rather than dismiss a bad faith claim, co-trustees in a March 5 opposition ask a Florida federal court to abate that claim until a breach of contract claim is resolved in their lawsuit over a cost increase allegedly tied to captive reinsurance transactions that benefited an insurer’s corporate parent (Michael Foster, et al. v. Transamerica Life Insurance Co., No. 19-24969, S.D. Fla.).

  • March 23, 2020

    Beneficiary: Secret Cancellation Of Accidental Death Policy Was In Bad Faith

    SEATTLE — An accidental death insurer acted in bad faith when it secretly canceled an insured’s policy and refused to pay benefits to its insured’s beneficiary after the insured died in an automobile accident, the beneficiary argues in a March 19 complaint filed in Washington federal court (Amy Billings v. Transamerica Life Insurance Co., No. 20-426, W.D. Wash.).

  • March 23, 2020

    Trial Court’s Summary Judgment Ruling In Bad Faith Suit Upheld On Appeal

    INDIANAPOLIS — An Indiana appellate panel in a March 10 unpublished opinion ruled that an insurer did not act in bad faith in its handling of an automobile insurance claim because the undisputed evidence shows that the insurer made all necessary payments to its insured under the policy’s underinsured motorist (UIM) provision (Larry Mickow v. AAA Insurance MemberSelect Insurance Co., No. 19A-CT-1546, Ind. App., 2020 Ind. App. Unpub. LEXIS 300).

  • March 23, 2020

    Insured’s Breach Of Contract, Bad Faith Claims To Proceed Against Life Insurer

    TRENTON, N.J. — A New Jersey federal judge on March 1 denied a life insurer’s motion to dismiss breach of contract and bad faith claims after determining that the insured sufficiently alleged facts in support of the claims (Mahmud U. Haq v. Nationwide Life and Annuity Insurance Co., No. 19-10553, D. N.J., 2020 U.S. Dist. LEXIS 36825).

  • March 20, 2020

    Bad Faith, Unfair Claims Practices Allegations Against Auto Insurer Dismissed

    LAS VEGAS — A Nevada federal judge on March 19 dismissed an insured’s claims for bad faith and unfair claims practices against an auto insurer after determining that the insured failed to allege sufficient facts in support of the claims (Mike Castillo v. GEICO Casualty Co., No. 19-1259, D. Nev., 2020 U.S. Dist. LEXIS 48048).

  • March 20, 2020

    Texas Panel Says Bad Faith, Other Extracontractual Claims Must Be Abated

    HOUSTON — The First District Texas Court of Appeals on March 17 determined that a trial court erred in refusing to abate an insured’s extracontractual claims from a declaratory judgment claim filed against an auto insurer because the extracontractual claims are dependent on the resolution of the declaratory judgment claim (In re State Farm Mutual Auto Insurance Co., No. 01-19-00821, Texas App., 1st Dist., 2020 Tex. App. LEXIS 2214).

  • March 20, 2020

    Bad Faith Claim Cannot Proceed In Arizona, Federal Judge Determines

    PHOENIX — An Arizona federal judge on March 17 dismissed a bad faith suit filed against a workers’ compensation insurer because the insured’s claim is governed by the laws of California, which is where the workers’ compensation claim was filed (Richard Duran v. National Interstate Insurance Co., No. 19-4779, D. Ariz., 2020 U.S. Dist. LEXIS 46725).

  • March 18, 2020

    Reinsurer Seeks Dismissal Of Insurers’ Bad Faith Claim In California Federal Case

    LOS ANGELES — Reinsurance “is not the type of insurance that supports a bad faith remedy,” a reinsurer argues in a March 16 reply in support of its motion to dismiss or strike insurers’ bad faith claim from a California federal court lawsuit regarding reinsurance payments (California Capital Insurance Co., et al. v. Maiden Reinsurance North America, Inc., No. 20-01264, C.D. Calif.).