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Mealey's Insurance Bad Faith

  • June 10, 2019

    Airport Liability Insurer Properly Denied Coverage; Bad Faith Claim Fails

    FRESNO, Calif. — A California federal judge on June 5 determined that an insured’s assignee cannot proceed on claims for breach of contract and bad faith against an airport liability insurer because the policy at issue clearly excluded coverage for the insured’s negligence, which allegedly caused a helicopter to crash (Gary R. Farrar, et al. v. American National Property and Casualty Co., No. 15-1177, E.D. Calif., 2019 U.S. Dist. LEXIS 94487).

  • June 7, 2019

    Business Liability Dispute Remanded; Amount In Controversy Not Met

    PHILADELPHIA — A Pennsylvania federal judge on June 5 granted a motion to remand a breach of contract and bad faith suit after determining that the business liability insurer failed to prove that the insureds are seeking more than $75,000 for damages incurred to an insured building (Murphy Murphy & Murphy P.C. v. Nationwide Insurance Co., No. 19-0712, E.D. Pa., 2019 U.S. Dist. LEXIS 94673).

  • June 6, 2019

    Dismissal Of Penalties, Attorney Fee Request In Bad Faith Suit Granted

    NEW ORLEANS — A federal judge in Louisiana on June 3 ruled that an insured failed to sufficiently plead that he is entitled to penalties and attorney fees under state law in an insurance bad faith lawsuit stemming from an automobile accident (Jerome Jacobs v. State Farm Automobile Insurance Co., et al., No. 18-11126, E.D. La., 2019 U.S. Dist. LEXIS 92272).

  • June 5, 2019

    Panel Reverses Order Over Reinsurance Facility’s Denial Of Reimbursement

    RALEIGH, N.C. — A panel of the North Carolina Court of Appeals on June 4 reversed a lower court’s order, which upheld the state’s insurance commissioner’s order reversing the North Carolina reinsurance facility’s denial of reimbursement to a motor vehicle insurer for an $11 million bad faith settlement and remanded to the commissioner (The North Carolina Reinsurance Facility v. Mike Causey, et al., No. COA 18-1303, N.C. App., 2019 N.C. App. LEXIS 495).

  • June 5, 2019

    Statutory, Common-Law Bad Faith Claims Dismissed Against Auto Insurer

    PHILADELPHIA — A federal judge in Pennsylvania on June 3 ruled that an insured has stated only conclusory allegations in support of her claim for statutory bad faith under state law against her automobile insurance provider and has failed to plead any factual allegations to support her claim (Latrisse Pommells v. State Farm Insurance, No. 18-5143, E.D. Pa., 2019 U.S. Dist. LEXIS 92435).

  • June 5, 2019

    Disability Claimant’s Bad Faith, Breach Of Contract Suit Dismissed As Untimely

    FORT LAUDERDALE, Fla. — A Florida federal judge on May 31 dismissed a disability claimant’s complaint after determining that the claimant’s breach of contract and bad faith allegations are barred by the policy’s three-year limitations provision and Delaware’s applicable three-year statute of limitations (Douglas Kuber v. The Prudential Insurance Company of America, No. 19-80151, S.D. Fla., 2019 U.S. Dist. LEXIS 92468).

  • June 5, 2019

    Motion To Amend Complaint In Insurance Bad Faith Suit Partially Granted

    PHOENIX — Claimants may amend their complaint to add a claim for equitable estoppel against an insurer in a breach of contract and bad faith lawsuit because, although they have already stated a claim for promissory estoppel, they may be able to state claims under both causes of action, a federal judge in Arizona ruled May 23 (Jane Frutiger, et al. v. USAA General Indemnity Co., No. 18-0547, D. Ariz., 2019 U.S. Dist. LEXIS 87104).

  • June 4, 2019

    Federal Magistrate Recommends Dismissal Of Disability Claimant’s Bad Faith Suit

    MIAMI — A Florida federal magistrate judge on May 31 recommended that a disability insurer’s motion to dismiss be granted after determining that the claimant failed to state a claim for breach of contract and cannot allege a bad faith claim until a determination of liability is made (Rodolfo Molina v. Provident Life & Accident Co., No. 18-24413, S.D. Fla., 2019 U.S. Dist. LEXIS 92479).

  • June 4, 2019

    Claims, Counterclaims In Insurance Coverage Dispute Are Not Ripe, Judge Says

    DENVER — In a coverage dispute over a $2.4 million judgment in an underlying construction defects case, a Colorado federal judge on May 30 dismissed third-party statutory and common-law bad faith counterclaims against an insurer as well as the insurer’s declaratory relief claim because the underlying matter is not ripe for review (Auto-Owners Insurance Co. v. Bolt Factory Lofts Owners Association Inc., et al., No. 18-01725, D. Colo., 2019 U.S. Dist. LEXIS 90196).

  • June 3, 2019

    Florida Condo Association Sues Insurer For Breach Of Contract, Bad Faith

    ORLANDO, Fla. — A condominium association on May 16 sued an insurer for breach of contract, unfair settlement practices and bad faith in a Florida court, alleging that its covered property damages caused by a Sept. 10, 2017, storm “were obvious had Defendant conducted an impartial and adequate inspection of the premises” (Reserve at Pershing Oaks Condominium Association v. Westchester Surplus Lines Insurance Company, No. 19-00931, Fla. Cir.).

  • May 31, 2019

    Information Related To Auto Insurer’s Litigation Strategy Is Not Discoverable

    TACOMA, Wash. — A Division II Washington Court of Appeals panel on May 29 reversed and remanded a trial court’s ruling that information related to an insurer’s decision to remove an insured’s suit to federal court is discoverable as evidence of the insurer’s alleged bad faith conduct because litigation strategy is “almost never discoverable” and the insured failed to meet the high bar for piercing the attorney-client privilege (Payton O. Hoff v. Safeco Insurance Company of Illinois, No. 50850-8-II, Wash. App., Div. 2, 2019 Wash. App. LEXIS 1337).

  • May 31, 2019

    Claims Against Life Insurer Dismissed; Plaintiffs Failed To Support Allegations

    MONROE, La. — A Louisiana federal judge on May 28 granted a life insurer’s motion for summary judgment after determining that the beneficiaries of the decedent failed to support their allegations that the insurer breached its contract and acted in bad faith in denying the beneficiaries’ claim following the death of their father (Jesse Clarence Brown Jr. estate, et al. v. New York Life Insurance Co., et al., No. 17-1486, W.D. La., 2019 U.S. Dist. LEXIS 89464).

  • May 30, 2019

    9th Circuit Reverses, Remands Ruling On Breach Of Contract, Bad Faith Claims

    PORTLAND, Ore. — The Ninth Circuit U.S. Court of Appeals on May 29 reversed and remanded a district court’s dismissal of an insured’s breach of contract and bad faith claims against an auto insurer because the insured was not afforded the opportunity to amend his breach of contract claim and because the insured’s expectation that the cost of a diagnostic scan on his vehicle would be covered under the policy was not unreasonable (Leif Hansen v. Government Employees Insurance Co., No. 18-35383, 9th Cir., 2019 U.S. App. LEXIS 15931).

  • May 29, 2019

    Objections To Report In Bad Faith Dispute Over Homeowners Policy Overruled

    SHERMAN, Texas — A federal judge in Texas on May 23 overruled several objections filed by an insurer in an insurance bad faith lawsuit, ruling that a federal magistrate judge’s conclusions in her report were supported by the evidence (Ing Pek, et al. v. Allstate Vehicle and Property Insurance Co., No. 18-0259, E.D. Texas, 2019 U.S. Dist. LEXIS 86531).

  • May 29, 2019

    Federal Judge Says Breach Of Contract, Bad Faith Claims Not Timely Filed

    PHILADELPHIA — A Pennsylvania federal judge May 23 granted a commercial property insurer’s motion to dismiss claims for breach of contract and bad faith because the insured, seeking coverage for the theft of a business machine, failed to file suit within the policy’s two-year limitations provision and failed to file suit within the applicable two-year statute of limitations for bad faith claims (MailQuip Inc. v. Allstate Insurance Co., No. 19-223, E.D. Pa., 2019 U.S. Dist. LEXIS 87923).

  • May 24, 2019

    Disability Claimant’s Breach Of Contract, Bad Faith Suit Remanded

    SANTA ANA, Calif. — A disability claimant’s breach of contract and bad faith suit must be remanded to state court because the insurer failed to prove that the claimant is seeking more than $75,000 in damages, a California federal judge said May 23 (Sabrina Dakak v. Fidelity Security Life Insurance Co., No. 19-247, C.D. Calif., 2019 U.S. Dist. LEXIS 87367).

  • May 24, 2019

    Kentucky Panel Finds Bad Faith Claim Against Insurer Was Timely, Reverses

    FRANKFORT, Ky. — A Kentucky appeals panel on May 24 reversed and remanded a lower court’s dismissal of a bad faith claim against an insurer arising from an underlying dram shop action against the insured, finding that the bad faith claim was timely (William Gerald Watson v. United States Liability Insurance Company, No. 2018-ca-000475, 2019 Ky. App. LEXIS 94).

  • May 24, 2019

    Insurer Granted Summary Judgment On All Claims In Bad Faith Suit

    SAN ANTONIO — An insured has failed to present any evidence showing that his insurer failed to timely investigate his claim for roof damage and, thus, has failed to state a claim for insurance bad faith, a federal judge in Texas ruled May 15 in granting the insurer’s summary judgment motion (Mark Sadovsky v. Nationwide Property and Casualty Insurance Co., No. 18-271, W.D. Texas, 2019 U.S. Dist. LEXIS 83864).

  • May 24, 2019

    Insureds Failed To Prove Homeowners Insurer’s Denial Of Coverage Was Unreasonable

    PIERRE, S.D. — A bad faith claim alleged by insured homeowners seeking a finding that their insurer owes coverage for the costs of complying with an injunction that required them to tear down and rebuild their house must be dismissed because the insureds failed to show that the insurer lacked a reasonable basis for denying coverage, a South Dakota federal judge said May 17 (Joseph Sapienza, et al. v. Liberty Mutual Fire Insurance Co., No. 18-3015, D. S.D., 2019 U.S. Dist. LEXIS 84973).

  • May 24, 2019

    Insured Alleges Insurer Paid Only $2.6M Of Its $39.6M Hurricane Maria Losses

    BOSTON — An insured on May 21 sued its insurer for bad faith in a federal district court, alleging that the insurer has made no payment on almost half of its 228 claims for a total of $39.6 million in damage caused by Hurricane Maria (Capital Crossing Servicing Company LLC v. Mapfre Praico Insurance Company, No. 19-11157, D. Mass.).

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