Mealey's Insurance Bad Faith

  • March 27, 2024

    Fact Issue Exists On Notice Of Insured’s Property Damage Claim, Kentucky Panel Says

    FRANKFORT, Ky. — The Kentucky Court of Appeals reversed and remanded a trial court’s summary judgment ruling in favor of a homeowners insurer on breach of contract and bad faith claims after determining that a question of fact exists as to whether the homeowner provided prompt notice of a property damage claim.

  • March 27, 2024

    Radioactive Materials Exclusion Applies; Breach Of Contract, Bad Faith Claims Fail

    MILWAUKEE — Breach of contract and bad faith claims against two commercial general liability insurers fail because the policies’ radioactive materials exclusion bars coverage for an underlying suit seeking damages for bodily injuries caused by exposure to electromagnetic (EMF) radiation from the insured’s electric transformers, a Wisconsin federal judge said in granting the insurers’ motion for summary judgment.

  • March 27, 2024

    Federal Judge: Ambiguities Mean Insurer Owes Defense To Damaged Home’s Owners

    SAN DIEGO — A California federal judge granted in part a couple’s motion for partial summary judgment, finding that a renovator’s insurer owes them a duty to defend and indemnify due to damages caused to the couple’s duplex home while the renovator was replacing the roof because an ambiguously worded policy exclusion regarding apartments does not bar coverage.

  • March 27, 2024

    Insured’s Claims To Proceed Against Non-Issuing Insurance Companies, Judge Says

    OKLAHOMA CITY — Breach of contract and bad faith claims can proceed against an insurer’s related entities because the named insured stated sufficient facts to create a fact issue as to the liability of the non-issuing insurance companies.

  • March 26, 2024

    Auto Insurer’s Claims File Is Discoverable, Ohio Panel Says In Affirming Ruling

    CINCINNATI — A trial court did not err in ordering an auto insurer to produce its claims file because pursuant to Ohio precedent, an insurer’s claims file is discoverable up until the date of payment when insureds allege that the insurer acted in bad faith in handling a claim, the First District Ohio Court of Appeals said in affirming the trial court’s ruling.

  • March 26, 2024

    Bifurcation Of Breach Of Contract Claim From Bad Faith Claims Not Warranted

    DENVER — Bifurcation of an insured’s breach of contract claim from the insured’s bad faith claims is not warranted because it is not clear that the bad faith claims will fail or that the auto insurer would be prejudiced if the claims are not bifurcated, a Colorado federal judge said in denying the insurer’s motion for bifurcation.

  • March 26, 2024

    Insurers Win Summary Judgment On Bad Faith Claim In Case Over Settlement

    CINCINNATI — Ruling that Marginian v. Allstate Ins. Co. “plainly bars” the sole remaining bad faith claim under Ohio law “[a]nd no amount of discovery could change that,” an Ohio federal judge granted summary judgment for defendant insurers in litigation over the settlement of a third-party personal injury lawsuit.

  • March 25, 2024

    Indiana Federal Judge Awards Insured Prejudgment Interest In Cleanup Suit

    SOUTH BEND, Ind. — An Indiana federal judge on March 22 denied insurers’ post-trial motions, upheld a jury’s verdict of $112 million in favor of the insured and awarded the insured approximately $3 million in prejudgment interest in a breach of contract and bad faith suit stemming from the insured’s request for coverage costs related to the cleanup of polychlorinated biphenyls (PCBs).

  • March 25, 2024

    Judgment Granted For Insurer In Dispute Over Insured’s Hurricane Coverage Fraud

    LAKE CHARLES, La. — A Louisiana federal judge granted summary judgment to a homeowners insurer on its counterclaim to recoup reimbursement paid to a homeowner who sued the insurer for bad faith over its purported failure to adequately compensate her for damage caused by Hurricane Laura, finding that there is no dispute regarding the homeowner's misrepresentations when she applied for insurance.

  • March 22, 2024

    Insureds Urge 5th Circuit To Rehear Arbitration Row In $7M Hurricane Ida Dispute

    NEW ORLEANS — Two New Orleans property owners urge the Fifth Circuit U.S. Court of Appeals to grant panel or en banc rehearing of their appeal challenging the arbitrability of their claims for $7 million in damages caused by Hurricane Ida and for bad faith against a group of foreign and domestic insurers.

  • March 22, 2024

    Insured Permitted To Amend Bad Faith Claim Against Insurer Of Rental Property

    ABERDEEEN, Miss. — A Mississippi federal judge granted an insurer’s motion to dismiss a bad faith claim without prejudice to allow the insured to amend her complaint to add additional facts in support of the bad faith claim arising out of the insurer’s denial of coverage for damages to the insured’s rental property.

  • March 21, 2024

    Earth Movement Exclusion Bars Coverage For Foundation Settling, Federal Judge Says

    DENVER — Breach of contract and bad faith claims alleged against a homeowners insurer cannot survive because the policy’s earth movement exclusion clearly bars coverage for damages caused by settling in the foundation of the home, a Colorado federal judge said March 20 in granting the insurer’s motion for summary judgment.

  • March 21, 2024

    Panel Affirms Ruling In Favor Of Insurer In Bad Faith Suit Over Woolsey Fire Damage

    LOS ANGELES — A California appeals court held that a homeowners insurer did not breach the insurance contract or the implied covenant of good faith and fair dealing and did not commit financial elder abuse because it paid the proper insureds “all (if not more than)” it had a duty to pay under the policy coverages for dwelling repairs, personal property damage and temporary additional living expenses, affirming a lower court’s summary judgment ruling in favor of the insurer in a coverage dispute arising from property damage cause by the Woolsey Fire.

  • March 21, 2024

    Judge: 1 Expert Excluded, Others Allowed In Insurance Coverage Spat

    DENVER — Experts retained by homeowners can testify on the cause of alleged water damage that is part of an insurance coverage dispute, but the insurer’s expert is inadmissible because his testimony is irrelevant to the issues in the case, a Colorado federal judge ruled.

  • March 19, 2024

    Judge Grants Dismissal To Guaranty Association In Hurricane Ida Coverage Dispute

    NEW ORLEANS — A Louisiana federal judge dismissed homeowners’ claims against the Louisiana Insurance Guaranty Association (LIGA) in a breach of contract and bad faith suit against it over liability for purported damages caused by Hurricane Ida, finding that because the homeowners voluntarily dismissed the related claims against LIGA, which was substituted for a now-insolvent insurer, LIGA’s motion for partial dismissal is moot.

  • March 19, 2024

    Amended Complaint Proposed In Delaware Suit Over Alleged Asset Dissipation

    WILMINGTON, Del. — Plaintiffs in a suit over the “Agera transactions” — a complex asset-swap arrangement that they allege resulted in the “dissipation of at least $250 million” — have moved in Delaware Chancery Court for leave to amend the complaint “to clarify the record and make minimal amendments.”

  • March 19, 2024

    3rd Circuit Affirms Ruling For Homeowners Insurer In Water Damage Coverage Suit

    PHILADELPHIA — The Third Circuit U.S. Court of Appeals affirmed a district court’s ruling in favor of a homeowners insurer on breach of contract and bad faith claims in a water damage coverage dispute, agreeing with the insurer that the policy’s one-year suit limitation provision bars the breach of contract claim and that there is no evidence that the insurer’s denial of coverage was unreasonable.

  • March 18, 2024

    Second-Layer Excess Insurer Owed A Duty Under Policy To Act In Good Faith

    FLINT, Mich. — An insured’s claim for breach of contract based on a second-layer excess insurer’s failure to participate and contribute in the settlement of an underlying wrongful death suit can proceed because the insurer owed a duty under the insurance contract to exercise good faith in negotiating and settling the underlying case and the insured presented sufficient facts in support of its claim, a Michigan federal judge said in denying the insurer’s motion for judgment on the pleadings.

  • March 18, 2024

    Insureds’ Bad Faith Claim In UIM Benefits Dispute Can Proceed, Judge Says

    PHILADELPHIA — A bad faith claim alleged against an auto insurer can proceed because the insureds stated sufficient facts to support their allegation that the insurer failed to properly investigate their claim for underinsured motorist (UIM) benefits, a Pennsylvania federal judge said March 14 in partially denying the insurer’s motion to dismiss.

  • March 15, 2024

    Judge Adopts Report, Remands Hurricane Coverage Suit Against Guaranty Association

    MOBILE, Ala. — An Alabama federal judge adopted a magistrate judge’s report and recommendation that a bad faith and breach of contract hurricane coverage suit against the Alabama Guaranty Association (AIGA) be remanded to state court, agreeing with the magistrate judge’s finding that the suit is “due to be remanded” because the court “lacks subject matter jurisdiction.”

  • March 14, 2024

    Coverage For Storm Damage Will Be Resolved As Part Of Breach Of Contract Claim

    COVINGTON, Ky. — A homeowners insurer’s counterclaim seeking a declaration that no coverage is owed for storm damage to the insured’s home must be dismissed because the issue of coverage will be resolved as part of the insured’s breach of contract claim, a Kentucky federal judge said March 13 in dismissing the counterclaim.

  • March 14, 2024

    Dismissal Of Bad Faith Suit Recommended For Failure To Comply With Florida Law

    FORT LAUDERDALE, Fla. — A Florida federal magistrate judge recommended granting an insurer’s motion to dismiss its insureds’ bad faith suit because the insureds failed to file a compliant civil remedy notice (CRN) as required under Florida law before filing a bad faith suit against the insurer.

  • March 14, 2024

    Bad Faith Claim Against Boat Insurer Can Proceed, Massachusetts Judge Says

    BOSTON — An insured’s breach of contract claim cannot proceed as pleaded because the insured failed to show that the insurer breached any terms of the policy; however, the insured’s bad faith claim can proceed because it cannot be conclusively established that the insurer did not act in bad faith in investigating the insured’s claim for coverage for a boat accident, a Massachusetts federal judge said in partially granting the insurer’s motion for judgment on the pleadings.

  • March 13, 2024

    Summary Judgment Denied To State Farm In Dispute Over Concealed SSDI Application

    DENVER  — A Colorado federal judge denied State Farm’s motion for summary judgment in a bad faith and breach of contract suit filed against it over coverage for an insured’s uninsured/underinsured motorist (UM/UIM) claims related to an auto accident, finding that the insured did “not technically” make false statements regarding her application for Social Security Disability Income (SSDI) that would void her insurance policy for fraud.

  • March 13, 2024

    Insured’s Bad Faith Claim Against Auto Insurer Dismissed Without Prejudice

    PHILADELPHIA — An insured’s bad faith claim alleged against an auto insurer cannot proceed because the insured’s complaint alleges only conclusory statements with no factual support, a Pennsylvania federal magistrate judge said March 12 in dismissing the claim without prejudice.

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