Judge Dismisses California Authority’s Tortious Bad Faith Claims Against Reinsurers

Mealey's (October 6, 2021, 4:07 PM EDT) -- SACRAMENTO, Calif. — A California joint power authority’s allegations against reinsurers lack factors that the California Supreme Court has relied on to extend tort recovery in the insurance context, a federal judge in California ruled Sept. 27, dismissing claims for tortious breach of the implied covenant of good faith and striking the authority’s prayers for punitive damages and attorney fees from the breach of contract complaint....