Bad Faith Sentinel - July 2013


- Northern District of Texas: No Bad Faith for Denying Property Damage Claim Due to Insured’s Failure to Allow Insurer More Than a Day’s Time for Inspection Prior to Insured’s Remediation

- District of South Carolina: Insurer Files Suit to Determine if Insured has a Common Law Marriage That Would Afford Additional Insurance Benefits; Court Permits Broad Discovery Into Insurer’s Policies and Procedures After Insured Alleges Bad Faith

- Supreme Court of Appeals of West Virginia: Third-Party Bad Faith Claims are Not Permitted Based on Processing of a Claim

- Louisiana Court Finds That Where Doubt Existed as to Coverage Under Excess Policy, Insurer’s Decision to Withhold a Defense Was Not Bad Faith

- Middle District of Florida: Third-Party Bad Faith Claim Permitted to Continue Where Excess Judgment Satisfied

- Tenth Circuit: Insurer Must Defend if Facts Beyond the Complaint Reveal the Mere Possibility that a Claim is Covered.

Excerpt from Northern District of Texas:

"Plaintiff Mario Santacruz’s home was insured by defendant Allstate Texas Lloyds, Inc. when a storm blew shingles off Santacruz’s roof. Santacruz’s home suffered water and other interior damage from portions of his roof falling into his home. Santacruz covered his roof with a tarp and a contractor recommended that he immediately fix his roof. The next day, Santacruz called Allstate and requested an inspection by Allstate that same day because workers were on-site ready to commence remediation. After Allstate advised Santacruz that it could not send an inspector for a couple of days, Santacruz proceeded with the remediation work before Allstate could inspect the roof and damages. Allstate arrived at Santacruz’s home two days later, at which time all of the remediation work was completed."

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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