News & Analysis as of

Bad Faith Summary Judgment Breach of Contract

Zelle  LLP

When Coverage Disagreements Are Justified: The Bona Fide Dispute Doctrine in Action

Zelle LLP on

In Texas, bad faith claims arising under the Texas Insurance Code or the common law are routinely asserted by plaintiffs in first-party insurance disputes. While these causes of action are frequently pled, mere disagreement...more

Cozen O'Connor

Jackson v. Spinnaker: Court Rules a Thorough Investigation is Just Good Business, Not Bad Faith

Cozen O'Connor on

In Jackson v. Spinnaker Insurance Company, the United States District Court for the Western District of Pennsylvania considered a homeowners insurance coverage dispute, ultimately finding that questions of residency and...more

Cozen O'Connor

Fifth Circuit Reaffirms Appraisal and Bad Faith Jurisprudence as Policyholders Continue to Probe for Opportunities

Cozen O'Connor on

The United States Court of Appeals for the Fifth Circuit upheld a summary judgment granted to the insurer over a policyholder’s argument that payment of an appraisal award and interest may extinguish an insurer’s liability...more

McGuireWoods LLP

Xerox Obtains Important Pro-Policyholder Decision in New York’s First Department, Adopting Narrow Construction of “Arising From”...

McGuireWoods LLP on

In March last year, New York’s Appellate Division – First Department issued Xerox an important pro-policyholder decision in its D&O insurance recovery action against Travelers, arising from Xerox’s failed 2018 merger with...more

Zelle  LLP

Claims for Statutory Interest and Attorney’s Fees Do Not Survive Insured’s Death

Zelle LLP on

Recently, a magistrate judge for the Eastern District of Texas recommended granting an insurer’s motion for summary judgment, holding that an insured’s claims for statutory interest and attorneys’ fees under Chapter 542 of...more

Snell & Wilmer

Exceptions to the Enforceability of Limitation of Liability Clauses

Snell & Wilmer on

A common feature of some contracts, including construction and design contracts, is a limitation of liability clause that limits or "caps" the amount of potential damages a party faces in the event of a breach. Although...more

Carlton Fields

Not So Fast: Court Upholds Denial of Request for Accelerated Life Insurance Payment

Carlton Fields on

The Ninth Circuit recently affirmed a summary judgment ruling in favor of Minnesota Life Insurance Co. on all claims stemming from its denial of an accelerated life insurance payment. ...more

Pullman & Comley, LLC

The Ghost of Systems Past: “Big Data” Suits Loom, But Old Data Issues Remain Unresolved

Pullman & Comley, LLC on

2017 could be big for litigation over “Big Data” applications in insurance. This past year saw the filing of several “price optimization” class actions, and claims against a fraud detection tool, similar to the ones used by...more

Saul Ewing LLP

No Breach Of Contract Or Bad Faith As A Matter Of Law Where Defense Counsel Agreed To Accept Rates Paid By Insurer

Saul Ewing LLP on

Feld v. Fireman’s Fund Ins. Co., Case No. 12-1789 (D.D.C. Sept. 13, 2016). In a case where Saul Ewing represented Fireman’s Fund Insurance Company (“FFIC”), the District Court for the District of Columbia granted FFIC’s...more

Cozen O'Connor

Genuine Dispute Defeats Both Bad Faith and Elder Abuse

Cozen O'Connor on

The Paslays sued State Farm for failing to pay a portion of the damage caused to their Pacific Palisades house by a heavy rainstorm and for forcing them to move back into the house while it was still under construction. The...more

Saul Ewing Arnstein & Lehr LLP

District of Colorado Grants Summary Judgment for Insurer on Bad Faith Claim Arising from Denial of Coverage Under E & O Policy

P&S LLC v. Nat’l Union Fire Ins. Co. of Pittsburgh, Pa., No. 14-cv-00735-LTB-CBS (D. Colo. July 29, 2015). District of Colorado grants summary judgment for insurer on bad faith claim where insurer established that an...more

Saul Ewing Arnstein & Lehr LLP

Third Circuit Court of Appeals Predicts That Pennsylvania Supreme Court Would Prevent an Insured from Recovering Punitive Damages...

Wolfe v. Allstate Prop. & Cas. Ins. Co., No. 12-4450, 2015 WL 3634779 (3d Cir. June 12, 2015). The Third Circuit Court of Appeals holds that evidence of punitive damages award against insured in underlying suit was not...more

Saul Ewing Arnstein & Lehr LLP

Middle District of Pennsylvania: Possibility of Bad Faith Exists Despite Payment of Claim Where Insured Alleges Untimely Claims...

Scheirer v. Nationwide Ins. Co. of Am., No. 3:13-CV-1397, 2015 WL 1013986 (M.D. Pa. Mar. 9, 2015). Middle District of Pennsylvania denies cross-motions for summary judgment on bad faith claim, holding that material...more

Haight Brown & Bonesteel LLP

Insurance Client Alert: Denial of Summary Judgment Does Not Automatically Establish Duty to Defend

In McMillin Companies v. American Safety Indemnity (No. D063586, filed 1/20/15), a California appeals court ruled that an insurer's loss of a summary judgment motion on the duty to defend does not necessarily establish that a...more

Cozen O'Connor

Prompt Payment of An Appraisal Award Bars Bad Faith Per Austin U.S. District Court, Although Some Acts By An Insurer May Leave The...

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The United States District Court for the Western District of Texas in Austin recently held that an insurer’s timely payment of an appraisal award bars the insured’s extra-contractual tort claims. Michels v. Safeco Ins. Co. of...more

Wilson Sonsini Goodrich & Rosati

Another California Court Awards Attorneys' Fees in Bad-Faith Trade Secret and Patent Inventorship Lawsuit

Earlier this month, the U.S. District Court for the Southern District of California awarded more than $11 million in attorneys' fees and costs to three trade secret defendants, finding that plaintiffs who had raised a claim...more

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