Mealey's Insurance Bad Faith

  • September 19, 2023

    Dismissal Granted In Multiple Hurricane Damage Suit Against Insolvent Insurer

    LAKE CHARLES, La. — A Louisiana federal judge dismissed a homeowner’s breach of contract suit against a now-insolvent insurer over its failure to compensate for damages caused by two hurricanes, finding that the magistrate judge correctly determined in a report and recommendation that because the homeowner amended her complaint to add the Louisiana Insurance Guaranty Association (LIGA) as a defendant, the court lacks subject matter jurisdiction.

  • September 19, 2023

    Insurers Cross-Appeal In Coverage Dispute With Home Depot Over 2014 Data Breach

    CINCINNATI — Insurers filed cross-appeal notices in an Ohio federal court two weeks and one day after their mutual insured, Home Depot, appealed to the Sixth Circuit U.S. Court of Appeals the lower court’s finding that an insurance policy’s electronic data exclusion bars coverage for the retailer’s losses stemming from a 2014 data breach.

  • September 19, 2023

    Remand To Florida Court Argued In Coverage Row Over Leased Aircraft

    MIAMI — Arguing in a reply brief that “in lawsuits between parties of different countries, there is no federal diversity jurisdiction,” plaintiffs in a coverage dispute over aircraft that a Russian airline refused to return after the invasion of Ukraine urge a Florida federal court to remand the case to Florida state court.

  • September 18, 2023

    Insurer Did Not Act In Bad Faith In Refusing To Settle For More Than Policy Limits

    TAMPA, Fla. — A trial court properly found that an auto insurer did not act in bad faith in refusing a settlement demand that was in excess of the insurance policy limits; however, the trial court erred in failing to properly consider applicable Florida precedent regarding the other theories of bad faith alleged by the insureds and third-party claimant, the Second District Florida Court of Appeal said.

  • September 18, 2023

    Insured Sufficiently Alleged Insurer Was A Party To Commercial Property Policy

    FRESNO, Calif. — A California federal judge denied a motion to dismiss filed by two insurers after determining that an insured’s breach of contract, bad faith and unfair business practices claims can proceed against one of the insurers because the insured nursing home sufficiently alleged that the insurer was a party to a commercial property insurance policy.

  • September 18, 2023

    Insurer Acted Reasonably In Enclosing Release With Tender Of Bodily Injury Limits

    HELENA, Mont. — A Montana federal magistrate judge granted an auto insurer’s motion for summary judgment after determining that claims alleging violations of Montana’s Unfair Trade Practices Act (UTPA) and bad faith cannot proceed because the insurer acted reasonably by enclosing an optional release when it tendered its insured’s bodily injury limits to the claimants following a motorcycle accident for which its insured was liable.

  • September 18, 2023

    Unfair Trade Practices, Bad Faith Claims Against Auto Insurer Dismissed

    PHILADELPHIA — Claims for violation of Pennsylvania’s Unfair Trade Practices and Consumer Protection Law (UTPCPL) and bad faith against an auto insurer cannot proceed because the insureds failed to allege sufficient facts in support of the claims, a Pennsylvania federal magistrate judge said in granting the auto insurer’s motion to dismiss.

  • September 15, 2023

    Motion To Add Guaranty Association Granted, Case Remanded In Hurricane Ida Suit

    NEW ORLEANS — A Louisiana federal judge granted insured homeowners’ motion to file a supplemental complaint to add the Louisiana Insurance Guaranty Association (LIGA) as a defendant in a Hurricane Ida coverage suit against their now-insolvent insurer, finding a lack of evidence that the homeowners sought to amend their complaint to defeat diversity jurisdiction but that because it is defeated by adding LIGA, the case must be remanded to state court.

  • September 14, 2023

    Triable Issues Exist As To Reasonableness Of Auto Insurer’s Claims Handling

    SEATTLE — An auto insurer is not entitled to summary judgment on an insured’s extracontractual claims because the insured raised triable issues of fact as to whether the auto insurer’s investigation and claims handling was reasonable, a Washington federal judge said in partially denying the auto insurer’s motion for summary judgment.

  • September 13, 2023

    Judge Dismisses Elder Abuse Suit Against LTC Insurer, Cites Inadequate Pleading

    SAN FRANCISCO — A California federal judge dismissed a breach of contract and elder abuse suit filed against a couple’s long-term care (LTC) insurer for its failure to cover the wife’s claim for benefits, finding that though the amended complaint contains “a bundle of allegations that might constitute plausible causes of action with some additional facts,” the amended complaint does not currently suffice to “allow this case to proceed.”

  • September 12, 2023

    Judge Remands Bad Faith Homeowners Insurance Suit Against Insolvent Insurer

    BATON ROUGE, La. — A Louisiana federal judge remanded to state court a bad faith homeowners insurance coverage suit over purported water damage from a plumbing leak, finding that remand is appropriate for lack of subject matter jurisdiction due to the Louisiana Insurance Guaranty Association (LIGA) being added as a defendant after the insurer was placed into liquidation.

  • September 08, 2023

    Home Depot Seeks 6th Circuit Review Of No Coverage Ruling For 2014 Data Breach Losses

    CINCINNATI — Home Depot filed a notice of appeal in an Ohio federal court asking the Sixth Circuit U.S. Court of Appeals to review the lower court’s finding that an insurance policy’s electronic data exclusion bars coverage for the retailer’s losses stemming from a 2014 data breach, challenging the lower court’s grant of the insurers’ motions for summary judgment in its breach of contract and bad faith lawsuit seeking damages up to the full collective policy limits of $50 million.

  • September 08, 2023

    Builders Risk Insurer’s JMOL, New Trial Motions Denied; $7.62M Judgment Entered

    DENVER — A federal judge in Colorado denied a builders risk insurer’s renewed motion for judgment as a matter of law (JMOL) and motion for a new trial following a jury’s award of $2.54 million in breach of contract damages to its condominium developer insured, rejecting the insurer’s arguments that the developer failed to prove that it suffered “resulting loss” damages and that the jury rendered an inconsistent verdict.

  • August 31, 2023

    Insurance Expert Is Admissible But Cautioned On Limits Of Testimony By Judge

    PHILADELPHIA — A federal judge in Pennsylvania denied a motion to exclude an expert on insurance industry standards in a bad faith dispute but ruled that the expert is barred from offering impermissible legal conclusions.

  • August 31, 2023

    Rehearing Denied After 9th Circuit Vacates Medical Payment Class Case Ruling

    PORTLAND, Ore. — The Ninth Circuit U.S. Court of Appeals denied a petition for rehearing en banc filed by an insurer accused in a putative class action of bad faith and other violations related to delayed medical payments following vehicle accidents after a panel vacated a summary judgment ruling and directed the trial court to first determine whether it has jurisdiction under the Class Action Fairness Act (CAFA).

  • August 31, 2023

    Condo Owner Is Not Insured; Breach Of Contract, Bad Faith Claims Properly Dismissed

    WAUKESHA, Wis. — A condominium owner’s breach of contract and bad faith claims against the condominium association’s insurer were properly dismissed by a trial court because the condominium owner is not an insured or a third-party beneficiary under the policy at issue, the Second District Wisconsin Court of Appeals said in affirming a trial court’s ruling.

  • August 30, 2023

    3rd Circuit Affirms Rulings Against Insured In Greenhouse Coverage Lawsuit

    PHILADELPHIA — Upholding rulings in favor of a insurer and reinsurer in a dispute concerning an ozone system failure in a basil-growing greenhouse, a Third Circuit U.S. Court of Appeals panel on Aug. 29 said in part that the trial court did not abuse its discretion in finding two proposed witnesses to be unqualified.

  • August 28, 2023

    Property Insurer Acted In Bad Faith In Handling Hurricane Claims, Judge Says

    LAKE CHARLES, La. — A Louisiana federal judge granted an insured’s motion for summary judgment on its bad faith claim against a property insurer after determining that it is undisputed that the insurer acted in bad faith in handling the insured church’s property damage claims arising out of Hurricanes Laura and Delta.

  • August 28, 2023

    Pollution Liability Insurer Says Bad Faith Suit Must Be Heard In Federal Court

    SEATTLE — An insured’s complaint alleging claims for breach of contract and bad faith arising out of a commercial general liability and pollution liability insurer’s denial of coverage for underlying bodily injury suits stemming from exposure to chemicals distributed by the insured must be removed to Washington federal court because diversity of citizenship exists and the amount in controversy exceeds the federal jurisdictional minimum of $75,000, the insurer says in a notice of removal.

  • August 28, 2023

    Breach Of Contract, Bad Faith Claims Against Auto Insurer Fail, Judge Says

    PHOENIX — An insured’s claims for breach of contract and bad faith cannot proceed against an auto insurer because the insured failed to show that an automobile accident in which he was involved was caused by an uninsured driver and that the auto insurer acted in bad faith in handling the insured’s claim following the accident, an Arizona federal judge said Aug. 25 in granting the auto insurer’s motion for summary judgment.

  • August 28, 2023

    Insurers Tell 5th Circuit $7M Hurricane Ida Dispute Belongs In Arbitration

    NEW ORLEANS — A group of foreign and domestic insurers tells the Fifth Circuit U.S. Court of Appeals in an appellee brief that it should affirm a Louisiana federal court’s ruling compelling arbitration of property owners’ claims for $7 million in damages caused by Hurricane Ida and for bad faith, writing that the arbitration is required under the insureds’ policies and the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the Convention).

  • August 25, 2023

    6th Circuit Affirms Finding That Insurer Couldn’t Void Policy In Fire Coverage Row

    CINCINNATI — The Sixth Circuit U.S. Court of Appeals affirmed a district court’s determination that a homeowners insurer could not void a policy after a jury returned a verdict in favor of the Tennessee homeowner and their insurance agency in a fire coverage dispute, finding that the insurer failed to prove that the homeowners’ misrepresentation about not having automatic water sprinklers in their home increased the risk of loss needed to void an insurance policy pursuant to Tennessee law.

  • August 25, 2023

    Reinsurer Wins Permission To Seal 2 Agreements In Cleanup Costs Coverage Row

    PADUCAH, Ky. — A Kentucky federal magistrate judge on Aug. 24 granted a motion to seal a third-party administrative services agreement (ASA) and a reinsurance agreement, saying the entities involved have a compelling interest that “outweighs the public’s interest in accessing” the documents and that redaction would be “impractical.”

  • August 24, 2023

    Bad Faith Claim Against Homeowners Insurer Fails, Louisiana Federal Judge Says

    SHREVEPORT, La. — A bad faith claim against a homeowners insurer cannot proceed because the insureds failed to meet their burden of showing that the insurer acted arbitrarily and capriciously in handling their claim for damages sustained to their home by hail, a Louisiana federal judge said in granting the insurer’s motion for partial summary judgment.

  • August 23, 2023

    Illinois Law, Not New Jersey Law, Governs Travel Insurance Policies, Judge Says

    NEWARK, N.J. — A New Jersey federal judge granted an insurer’s motion to dismiss a putative class action complaint alleging claims for violations of New Jersey law, breach of contract and bad faith based on the insurer’s denial of claims for the reimbursement of premiums paid for travel insurance policies following trip cancellations caused by the coronavirus pandemic because the master policy, which governs the travel insurance policies, is governed by Illinois law and not New Jersey law.