Bad Faith

News & Analysis as of

Does an Insurer Commit “Bad Faith” by Refusing to Settle Your Case?

Barry P. Goldberg is regularly asked whether an insurer is committing “bad faith” by failing or refusing to settle a case. Most accident victims do not realize that the “at fault” party’s insurer really owes virtually no duty...more

Bad Faith Sentinel - October 2014

In This Issue: - Florida District Court of Appeal: A Prematurely Filed Bad Faith Claim Does Not Compel Dismissal - Florida District Court of Appeal: Insurer’s Liability For Breach Of Contract Need Not Be...more

Missouri Court of Appeals Rejects Insurers’ Appeal of Jury Verdict on Bad Faith Failure to Settle, but Remands for New Trial on...

Advantage Bldgs. & Exteriors, Inc. v. Mid-Continent Cas. Co., No. WD76880, 2014 WL 4290814 (Mo. Ct. App. Sept. 2, 2014), reh’g and/or transfer denied (Sept. 30, 2014). Missouri Court of Appeals affirms sufficiency of...more

Florida District Court of Appeal: Insurer’s Liability For Breach Of Contract Need Not Be Determined Before Bad Faith Claim Ripens

Cammarata v. State Farm Florida Insurance Company, No. 4D13-185 (Fla. Dist. Ct. App. Sept. 3, 2014) (en banc). Clarifying recent conflicting precedents, the Florida District Court of Appeal for the Fourth District held...more

Florida District Court of Appeal: A Prematurely Filed Bad Faith Claim Does Not Compel Dismissal

Safeco Ins. Co. of Ill. v. Beare, No. 4D13-3104, 2014 WL 4626851 (Fla. Dist. Ct. App. Sept. 17, 2014). The Fourth District Court of Appeal of the State of Florida denies an insurer’s petition seeking review of the...more

United States Middle District of Florida Gives Plaintiffs an Option with regard to Premature Bad Faith Claims

In Gianassi v. State Farm Mut. Auto. Ins. Co., 2014 U.S. Dist. LEXIS 142600 (M. D. Fla. 2014), the Middle District granted in part and denied in part State Farm’s Motion to Dismiss two counts of Plaintiff’s three-count...more

Florida Appeals Court: In First-party Coverage Dispute, Ruling That Insurer Breached Contract Is Not Prerequisite to Insured’s...

Under Florida law, must a policyholder first prevail on a breach of contract action against the insurer before a bad faith claim may be filed? No, said a majority of the Florida Fourth District Court of Appeal, en banc (the...more

The Squeaky Wheel Gets the Grease--You Won’t Get Fees if You Don’t Complain Early

Stragent, LLC v. Intel Corp. - Applying recent standards for determining whether a case is “exceptional” under Octane Fitness for purposes of awarding fees, the U.S. District Court for the Eastern District of Texas...more

Judge in NY County Supreme Court encourages insured to appeal her decision, following Mighty Midgets case, ruling that insured is...

In a highly unusual decision, Judge Shirley Kornreich in Madison 96th Associates v. 17th East Owners Corporation, 43 Misc.3d 1210(A), denied an attorney-fee award to a prevailing plaintiff-insured in a declaratory judgment...more

Insurer’s Liability for Breach of Contract Is Not a Condition Precedent to Insured’s Bad Faith Claim

A Florida appeals court recently held in Cammarata v. State Farm Florida Insurance Co. that an insured is not required to show that its insurer breached the insurance policy before it can bring a claim for bad faith. Although...more

Missouri Court of Appeals Affirms Award of Compensatory Damages Against Insurer Based Upon Bad Faith Failure to Settle and Overall...

The Missouri Court of Appeals recently affirmed an award of compensatory damages against an insurer based upon bad faith in Advantage Bldgs. & Exteriors, Inc. v. Mid-Continent Cas. Co., 2014 Mo. App. LEXIS 975 (Missouri Court...more

Alabama Supreme Court Clarifies (And Criticizes) Its Bad Faith Jurisprudence

In an opinion released for publication on August 14th, 2014, one year after issuance, the Alabama Supreme Court unanimously held that the state has but one tort of bad faith, albeit with two separate methods of proof, and...more

Bad Faith Sentinel - September 2014

In This Issue: - Southern District of New York: It is Unlawful for an Insurer to Withhold Payment When Some Portion on an Insured’s Entitlement is Undisputed - Eastern District of Pennsylvania: State Farm...more

Eastern District of Pennsylvania Finds No “Link” to Bad Faith in Excess Carrier’s Conduct Towards Sausage Company Insured

This month, the Eastern District of Pennsylvania held that excess carrier American Guarantee and Liability Insurance Company (“American Guarantee”) did not engage in bad faith conduct towards insured Maglio Fresh Foods...more

Insurance Recovery Law - September 2014 #2

D&Os Entitled to Unfettered Access to Bankrupt Company’s Policy Proceeds to Fund Defense Costs: Why it matters - In an important victory for directors and officers of a bankrupt company, a New York court...more

Eleventh Circuit: Florida Law Does Not Equate Mere Negligence with Bad Faith

Kincaid v. Allstate Prop. and Cas. Ins. Co., No. 2:13-cv-014030, 2014 WL 3733758 (11th Cir. Jul. 30, 2014) - The Eleventh Circuit holds that under Florida law, negligence does not equate to bad faith, and under the...more

Oklahoma Court Excludes Evidence of Loss Reserves

Asap v. Starnet Ins. Co., No. CIV-12-461-D, 2014 U.S. Dist. LEXIS 128609 (W.D. Okla. Sept. 15, 2014) is a decision involving multiple motions in limine in connection with a trial of a breach of contract claim brought against...more

Eastern District of Pennsylvania Denies Bad Faith Claim in Homeowner’s Policy Dispute

White v. Metro. Direct Prop. and Cas. Ins. Co., Civ. A. No. 13-434 (E.D. Pa. July 29, 2014) - Eastern District of Pennsylvania enters summary judgment for the insurer on statutory bad faith claim in coverage dispute...more

Eastern District of Pennsylvania: State Farm Cannot Refuse Appraisal of Superstorm Sandy Damage

Currie v. State Farm Fire & Cas. Co., No. CIV.A. 13-6713, 2014 WL 4081051 (E.D. Pa. Aug. 19, 2014). After Superstorm Sandy damaged the insureds’ house, they and their insurer came to markedly different assessments of...more

Pennsylvania Magistrate Judge Recommends That Plaintiff’s Claims Be Barred in Their Entirety by Application of the Doctrine of...

In the Eastern District of Pennsylvania, applying the doctrine of collateral estoppel, a Magistrate Judge issued a Report and Recommendation granting an individual disability insurer summary judgment on an insured’s claims...more

Florida’s Fourth District Court of Appeal Holds Abating a Premature Bad Faith Claim does not Depart from the Essential...

In SafeCo Ins. Co. v. Beare, 2014 Fla. App. Lexis 14364 (Sept. 17, 2014), the Fourth District addressed a challenge to the trial court’s order abating rather than dismissing a premature bad faith claim. In 2011, Beare filed...more

When Does an Insurance Co. Waive Atty-Client Privilege?

If an insurance company alleges it lawfully denied a claim, is that an implied waiver of the attorney-client privilege as to its consultation with coverage counsel? When a policyholder sues an insurer for bad faith,...more

Calling a Letter a “Reservation of Rights” Does Not Necessarily Make It So

Many insurers are in the habit of sending perfunctory “reservation of rights” letters to their insureds throughout the lifetime of a claim. The reason they do so is not a very well-guarded secret in the insurance industry. An...more

Is That Covered? Insurer Refusal to Pay for Full Property Loss May Be Bad Faith

If you or your clients have ever had the experience of submitting a claim to an insurance company, you probably know how difficult it can be to get the insurance company to pay the full amount of damages. Even if the company...more

Insurance – Broker v. Agent Status as Affecting Liability Against Insurer

Douglas v. Fidelity National Insurance - California Court Of Appeal, First Appellate District (August 29, 2014) - Persons who solicit, sell or negotiate insurance contracts are known generically as “producers,”...more

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