Bad Faith

News & Analysis as of

District of Colorado: Insureds Have No Obligation To Hire Public Adjusters To Recover Amounts Due Under A Policy

Norman v. State Farm Fire & Cas. Co., No. 13-CV-01643-PAB-CBS, 2014 WL 6478046 (D. Colo. Nov. 19, 2014). District of Colorado holds that insured has no duty to hire own adjuster in order to receive payment, and denies...more

Pennsylvania Supreme Court Rules Statutory Bad Faith Claims are Assignable

On December 15, 2014, the Supreme Court of Pennsylvania held, in a 5-1 decision, that bad faith claims brought pursuant to 42 Pa. C.S. § 8371 may be assigned by an insured to an injured third party under Pennsylvania law. See...more

Court of Appeals of Michigan: Trial Court’s Incorrect Instruction on the Definition of Bad Faith Did Not Require Reversal

Tibble v. Am. Physicians Capital, Inc., No. 306944, 2014 WL 5462573 (Mich. Ct. App. Oct. 28, 2014). The Michigan Court of Appeals holds that although the trial court erred when it defined “bad faith” for the jury, the...more

Assign Away: Pennsylvania Supreme Court Says Bad Faith Claims May be Assigned

On December 15, 2014, in the case of Allstate Prop. & Cas. Ins. Co. v. Wolfe, No. 39 MAP 2014, slip op. at 1 (Pa. Dec. 15, 2014), the Pennsylvania Supreme Court ruled that an insured may assign a statutory bad faith claim...more

Pa. Supreme Court Agrees that Policyholders May Assign Their Bad Faith Claims

This week, in a 5-1 decision resolving a certified question from the U.S. Court of Appeals for the Third Circuit, the Pennsylvania Supreme Court held that a policyholder or insured is permitted to settle the claims against it...more

Bad Faith Spoliation of Audio Data Results in Adverse Inference Instruction (New York)

Novick v. AXA Network, LLC, 2014 WL 5364100 (S.D.N.Y. Oct. 22, 2014). In this contract dispute case, the plaintiff made a motion for sanctions under Rule 37(b)(2) requesting the court strike the defendants’ answer and...more

In re Novell, Inc. S’holder Litig., C.A. No. 6032 (Del. Ch. Nov. 25, 2014) (Noble, V.C.)

In this memorandum opinion, the Court of Chancery granted summary judgment in favor of defendants on claims alleging that directors acted in bad faith by favoring a bidder in a sale process for reasons other than the pursuit...more

Recent Decisions Reinforce the Value of Quality over Quantity in a Reservation of Rights Letter

In two recent cases, Advantage Builders & Exteriors v. Mid-Continent Casualty Co. No. WD 76880 (Mo. Ct. App. Sept. 2, 2014) and EAN Services, LLC v. Brunson, No. 2-14-118 (Ill. Ct. App. September 8, 2014), the courts remind...more

Et tu, Buddy?: When Excess Insurers Sue for Bad Faith

Insurers don’t, as a rule, like bad faith suits. But life can play funny tricks—as when a judgment against an insured breaches a layer of excess coverage, because the primary carrier failed to settle within its policy...more

California Court Rejects Bad Faith Claim

In Graciano v. Mercury General Corporation, 2014 Cal. App. LEXIS 1028 (Cal. App. Oct. 17, 2014), the California Court of Appeal had occasion to consider whether an insurer may be held liable for bad faith for unreasonably...more

Bad Faith Sentinel - November 2014

In This Issue: - Southern District of California Denies Motion to Dismiss Bad Faith Claim in Homeowners Policy Dispute - Northern District of Indiana: No Bad Faith Where Insurer Has a Rational Basis for its...more

Middle District of Pennsylvania: Mere Delay Does Not Constitute Bad Faith

Shaffer v. State Farm Mut. Auto. Ins. Co., No. 1:13-CV-01837, 2014 WL 5325340 (M.D. Pa. Oct. 20, 2014). Court grants summary judgment to insurer where lengthy investigation was required to determine causation for UIM...more

Loan to Own Variation: Bankruptcy May Not Provide The Answers

In re SR Real Estate Holdings, LLC, 506 B.R. 121 (Bankr. S.D. Cal. 2014) – A group of lenders moved to dismiss the debtor’s bankruptcy case on the basis that it was filed in bad faith, or in the alternative asked the...more

Middle District of Florida: Court Denies Summary Judgment For Insured On First-Party Bad Faith Claim Where Permanence Of Injury...

Cadle v. Geico Gen. Ins. Co., No. 6:13-CV-1591-ORL-31G, 2014 WL 4983746 (M.D. Fla. Oct. 6, 2014). Middle District of Florida finds that insured’s bad faith claim for first-party failure to settle could not properly be...more

Ask the Experts About Bad Faith; Just Be Careful How You Do It

In bad faith cases, juries must often decide if the way an insurer processed a claim lacked a “reasonable” basis. Courts have consistently held that experts can help—by explaining how a claim is supposed to be handled. The...more

Northern District of Indiana: No Bad Faith Where Insurer Has a Rational Basis for its Coverage Position

Thorne v. Member Select Ins. Co., No. 2:09 CV 87, 2014 WL 4700873 (N.D. Ind. Sept. 22, 2014). The Northern District of Indiana denies an insured’s motion for reconsideration of the court’s entry of summary judgment in...more

Texas Supreme Court Denies Policyholder’s Discovery Regarding Claims Handling

It is rare to see a state’s highest court address a discovery issue. But the Supreme Court of Texas did just that recently in In re National Lloyds Insurance Co., holding that a policyholder’s demands for discovery about how...more

Is That Covered? Hail Damage

Back in May, 2014, parts of Berks and Lancaster counties were hit with a freak hail storm. With hail as large as tennis balls reported, homes and cars suffered significant damage. Hail damage is generally covered under auto...more

Southern District of California Denies Motion to Dismiss Bad Faith Claim in Homeowners Policy Dispute

Eastman v. Allstate Ins. Co., No. 14cv0703, 2014 WL 5355036 (S.D. Cal. Oct. 20, 2014) - Southern District of California denies motion to dismiss bad faith claim in connection with coverage dispute under homeowners...more

Fifth Circuit Reaffirms the Importance of a Reasonable Claim Investigation Prior to Denial

In Santacruz v. Allstate Texas Lloyds, Inc., 2014 WL 5870429 (Nov. 13, 2014), the 5th Circuit allowed a policyholder to pursue a claim for common law and statutory bad faith even though the policyholder repaired the alleged...more

10 Business-Related Torts to Master

If you handle business litigation matters, you need to be fluent in the most common business-related torts and their elements so you can spot the issues immediately—to either allege them or defend against them. Don’t feel...more

Allegation That Court Itself Was Victim Of Fraud Causes Federal Judge To Recuse Himself, All Other Judges In The District

The biggest litigation you’ve probably never heard, the Moonlight Fire litigation, just took another twist. Following a huge Northern California wildfire, the State and the Feds sought tens of millions in damages from...more

Insurance Law Alert: Defective Policy Limit Demand Precludes Bad Faith

In Graciano v. Mercury General Corp. (No. D061956, filed 10/17/14), a California appeals court reversed a jury's verdict, ruling that a defective demand letter from the claimant's attorney precluded a finding of bad faith...more

Florida High Court To Decide Whether State Insurer Is Immune From Statutory Bad Faith Claims

The Florida Supreme Court has accepted for review a First District decision holding that Florida’s state insurer of last resort, Citizens Property Insurance Corporation, is not immune from a statutory bad faith failure to...more

Texas Supreme Court Orders and Opinion (10/14)

The Court issued its opinion in No. 13-0761, In re National Lloyds Insurance Company. This petition for a writ of mandamus was not argued; the court has issued a per curiam opinion under Rule 52.8(c). The mandamus petition...more

274 Results
|
View per page
Page: of 11