Bad Faith

News & Analysis as of

Supreme Court Corner - Q1 2014

OCTANE FITNESS V. ICON HEALTH & FITNESS* - Patent: Argument: February 26, 2014 - Issue: Whether the Federal Circuit’s two-part test for determining whether a case is “exceptional” under 35 U.S.C. § 285 – that it...more

Bad Faith Constitutes "Cause" For Dismissal Under Section 707(a)

Until recently, the creditor of a chapter 7 debtor whose debts were not primarily consumer in nature was unable to rely on Eleventh Circuit precedent to support its position that its debtor's chapter 7 bankruptcy case should...more

ERISA – 2nd Circuit: Reversible Error To Deny Successful Claimant’s Attorney Fees Solely Because There Was No Evidence of Bad...

Can a court deny a successful ERISA claimant’s attorney fees solely because there is no evidence of bad faith? NO....more

Homeowners Beware: Fraud in Claims Process Can Lead to Judicial Sanctions in Bad Faith Action

A federal court for the Southern District of Texas has sanctioned a pro se litigant for making fraudulent misrepresentations to his homeowner’s insurer following a fire, and for bringing a bad faith action against the...more

Bad Faith Sentinel - March 2014

CONTENTS - United States Court of Appeals for the Fourth Circuit: An Absence of Ascertainable Damages Does Not Preclude an Award of Punitive Damages for Bad Faith pages 1 - 2 - Northern District of Alabama: Insurer...more

Court Imposes Large Sanctions for Bad Faith Actions During Discovery (Illinois)

In re Pradaxa (Dabigatran Etexilate) Products Liability Litigation, 2013 WL 6486921 (S.D. Ill. Dec. 9, 2013). In this pharmaceutical litigation, the plaintiffs’ steering committees requested sanctions stemming from the...more

Oral Arguments in the Supreme Court Octane Fitness, LLC v. ICON Health & Fitness, Inc. Case

On February 26, 2014, the Supreme Court heard oral arguments in two cases dealing with the attorney fee-shifting provision of 35 U.S.C. § 285. In the first case, Octane Fitness, LLC v. ICON Health & Fitness, Inc. (Supreme...more

Insurance Recovery Law - Feb 26, 2014

Fourth Circuit Allows Punitive Damages Against Insurer For Bad Faith Despite Lack Of Actual Damages - Why it matters: A policyholder is not required to prove ascertainable damages to be entitled to an award of...more

Plaintiffs’ Attempt to Conceal Certain Text Messages Backfires (Puerto Rico)

Calderon v. Corporacion Puertorriquena de Salud, 2014 WL 171599 (D. P. R. Jan. 16, 2014). In this employment law case, the plaintiffs only produced a portion of the demanded text messages during discovery, claiming the...more

Bad Faith Sentinel - February 2014

In This Issue: - Indiana Bad Faith Ruling is Reminder that Resolution of Breach of Contract Claims in Favor of Insurer Does Not Necessarily Require Disposal of Tort-Based Bad Faith Claims - Fifth Circuit Court...more

Delaware Court of Chancery Grants Summary Judgment in Favor of Defendants with Respect to Acquisition of Answers.com

On February 3, 2014, Vice Chancellor John Noble of the Delaware Court of Chancery granted summary judgment in favor of defendants, dismissing a class action lawsuit arising out the acquisition of Answers Corporation (Answers)...more

Feeling the Heat in Florida: Could Canadian Insurers Be Exposed to Florida’s Unfriendly Bad Faith Laws?

Could a Canadian insurer that only insures Canadian residents still be sued for bad faith in Florida for failing to performing certain duties that must be performed in Florida? A recent Florida intermediate appeals court...more

A Good Faith Review of 2013

With the arrival of the new year, many are applying the mantra “out with the old, in with the new.” Although this may be motivational for personal resolutions, it does not generally apply in the context of law as last year’s...more

Texas Reminds Insurers of the Benefits of ADR Appraisals

Ever since the Texas Supreme Court drastically broadened the scope of appraisal in State Farm Lloyds v. Johnson, insurance companies providing coverage in Texas have likely wondered if continuing to include an appraisal...more

Domain Name Squatting to Gain Leverage Can Trigger "Bad Faith Intent" in an ACPA Claim

A required element to sustain a claim under the Anti-Cybersquatting Consumer Protection (ACPA) (15 U.S.C. § 1125(d)(1)(A)) is proof that the defendant acted with "bad faith intent to profit from that mark." As bad faith...more

Federal Circuit's Last Word on Attorney Fees - Actual Knowledge of Baseless Claim Not Required - Kilopass Tech., Inc. v. Sidenese...

Addressing the proof required to show a bad faith assertion of a baseless claim to establish an exceptional patent case for attorneys’ fees. the U.S. Court of Appeals for the Federal Circuit vacated and remanded a lower...more

Washington Insurance Law - 2013 Year in Review

2013 was a particularly eventful year in Washington insurance law. This paper summarizes the holdings of several notable Washington insurance decisions that were filed in 2013. Bad Faith - Attorney-Client...more

Insurance Company Tactics: Know Your Rights

In a landmark case from 2012, the Florida Supreme Court held that when suing insurers for bad faith, a policyholder must first sue the insurance company for violating the terms of the insurance agreement, and only after...more

Citizens Property Insurance Corp. – Florida Government in Action

Floridians need real help on insurance issues from our legislature and governor and it is not in the area of flood insurance premiums. Floridians need help with insurers who want to accept all the favorable legislation they...more

Pending Patent Legislation—Round Two of Patent Reform

The U.S. Congress is once again poised to enact a new round of patents reforms. It is important to know the potential impact the legislation could have on your intellectual property portfolio and to be prepared to act....more

"Good" Bad Faith vs "Bad" Bad Faith: Equitable Principles and the Doctrines of Adverse Possession and Prescription

Adverse possession is the acquisition of title to another’s real property by continuous possession and use of the property for the prescribed period of five years. A party seeking title to real property by adverse possession...more

Are Patent Plaintiffs in for a Rocky 2014?

The start of a new year is a good time for reflection – an excuse to take stock of where we are, how we got here and where we’re going. So it seems appropriate to observe that 2013 was a big year for accused infringers in...more

Fee Award to Prevailing Employer in Certain Actions Requires Employee Bad Faith

Existing law, with certain exceptions, requires a court in any action brought for the nonpayment of wages, fringe benefits, or health and welfare or pension fund contributions, to award reasonable attorneys' fees and costs to...more

Stay Away: Some Exceptions And Bases For Relief From The Bankruptcy Code’s Automatic Stay

The automatic stay provided for by section 362 of the Bankruptcy Code is triggered immediately upon the filing of a debtor’s petition with the Bankruptcy Court. Unfortunately, many business owners and managers have a basic...more

New Jersey Court of Appeals: Discovery Related to Bad Faith Claims Should Be Stayed Pending Resolution of Insurance Claims for...

On November 21, 2013, in Procopio v. Government Employees Insurance Company, a/k/a and d/b/a GEICO, Docket No. A23-1-12T2, an intermediate New Jersey appeals court held that in a pending uninsured motorist (UM) or...more

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