Mealey's Insurance Bad Faith
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August 10, 2022
Claim For Violations Of Texas Insurance Code To Proceed In Property Damage Suit
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.
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August 10, 2022
Judge Dismisses Claims Specialist, Allows 2 Claims To Proceed Against Insurer
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.
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August 09, 2022
Extracontractual Claims In Storm Damage Suit Dismissed With Prejudice
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.
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August 07, 2022
Auto Insurer Acted Reasonably In Attempting To Settle Claim Against Insured
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.
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August 05, 2022
Breach Of Contract, Bad Faith Claims Dismissed For Failure To Comply With Policy
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.
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August 05, 2022
Bad Faith, Auto Dispute Suit To Remain In Washington Federal Court, Judge Says
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.
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August 04, 2022
5th Circuit Affirms Dismissal Of Restaurants’ Bad Faith Suit Stemming From COVID-19
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.
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August 04, 2022
Bad Faith Allegations In Breach Of Contract Claim Are Relevant, Magistrate Says
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.
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August 04, 2022
Issues Of Fact Exist On When Professional Liability Insurer Disclaimed Coverage
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.
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August 03, 2022
Federal Judge: Insurer Acted In Bad Faith In Denying Wrongful Death Claim
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).
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August 02, 2022
Assignee Failed To Show Insurer Acted In Bad Faith By Refusing To Settle
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.
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August 02, 2022
Bifurcating Claims Is Not Warranted In Roof Damage Coverage Dispute, Judge Says
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.
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August 02, 2022
Beneficiary’s Claims For Contract Breach, Bad Faith To Proceed, Judge Says
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.
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August 02, 2022
Homeowners Insurer Was Within Rights To Cancel Policy Based On Insured’s Statement
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.
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August 02, 2022
Federal Magistrate Judge Recommends Partial Dismissal Of Bad Faith Claims
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.
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August 01, 2022
Expert Witnesses Barred In Policy Coverage Dispute; Insurer Wins Summary Judgment
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.
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July 29, 2022
No Ambiguity Exists In Disability Policy, 5th Circuit Panel Says In Affirming
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.
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July 27, 2022
Disability Insurer Properly Rescinded Policy, Federal Judge Says In Adopting Report
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.
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July 26, 2022
Couple May Plead Bad Faith Against Auto Insurer For Fraud Accusation, Judge Rules
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.
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July 26, 2022
Fact Issues Remain As To Whether Insurer Was Prejudiced By Notice Delay
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.