Bad Faith Bulletin

Extracontractual Claims Liability

Pennsylvania Supreme Court Clarifies Standard For Bad Faith

The Pennsylvania Supreme Court published perhaps its most anticipated insurance case of the year: Rancosky v. Washington National Ins. Co., 2017 WL 4296351 (Sep. 28. 2017).  In Rancosky, the court held that in order to prevail on a claim for… Continue Reading →

No Penalty for Delay of Game: Insurer Reasonably Handled Plaintiff’s Claim for Years as a Matter of Law

In Richard Igartua v. Mid-Century Insurance Co., No. 2:216-cv-00849-JAD-CWH (D. Nev. June 28, 2017), the District Court granted summary judgment to an insurer as to claims of bad faith, unfair claims practices and breach of contract, while methodically presenting a… Continue Reading →

In Virginia, No Bad Faith Claim Against UM Carrier Until There’s a Judgment Against the Uninsured Tortfeasor

In Manu v. GEICO Casualty Company, No. 160852, 2017 WL 1511791 (Va. Apr. 27, 2017), the Supreme Court of Virginia provided guidance on the scope of an uninsured motorist (UM) carrier’s bad faith exposure. The plaintiff sustained more than $33,000… Continue Reading →

9th Circuit Affirms Application of Prior Litigation and Prior Loss Exclusions as Bar to Coverage

The Ninth Circuit Court of Appeals affirmed a lower federal court’s finding that a business and management insurance policy’s prior knowledge and prior litigation exclusions bar coverage for an underlying lawsuit in Douglas Woo, et al. v. Scottsdale In.  Co.,… Continue Reading →

Washington Supreme Court Rules Insured Cannot Maintain Independent Cause of Action for Regulatory Violations Under Washington’s Insurance Fair Conduct Act

Washington’s Insurance Fair Conduct Act (IFCA) allows insureds to sue their insurers for an unreasonable denial of coverage or benefits, and recover triple damages if the insurer acts unreasonably or violates certain regulations. On February 2, 2017, the Washington Supreme… Continue Reading →

Insurer’s Conditional Offer to Pay the Policy Limit and Ensure Insured be Released was Not in Bad Faith

In Joseph Shaheen v. Progressive Casualty Ins. Co., the 6th Circuit U.S. Court of Appeals determined that the insurer’s conduct did not satisfy the threshold standard for bad faith claims under Kentucky law. In 2005, the insured, while intoxicated, struck… Continue Reading →

Insurer’s Conduct During Appeal of Underlying Judgment Does Not Affect “Bad Faith” Limitations Period

Dietz v. GEICO General Ins. Co. arose out of injuries in a 2009 traffic accident involving the insured. After the insurer denied coverage for medical expenses incurred by the plaintiff, the plaintiff filed suit against the insured in 2011 and… Continue Reading →

Insurer’s Post-Settlement Demand for Release by Insured Raises Possibility of Alleged Bad Faith

In Trotter, et al. v. American Modern Select Insurance Company, the U.S. District Court for the Western District of Oklahoma recently denied an insurer’s motion for summary judgment on bad faith claims, detailing what is and isn’t reasonable conduct in… Continue Reading →

Georgia Appeals Court Reverses Trial Court Order Denying Insurer’s Motion to Set Aside Default Judgment in Bad Faith Suit

In Central Mutual Ins. Co. v. Kicklighter, et al., the Court of Appeals of Georgia reversed the trial court’s order denying the insurer’s motion to set aside a default judgment. The default judgment had been obtained ex parte and then… Continue Reading →

Insurer on Hook for $5 Million for Failure to Respond in 15 Days to Request for Information or Settlement Demand Results

In Metropolitan Property and Casualty Insurance Company v. Hedlund, the U.S. District Court for the Eastern District of California found, after a one-day bench trial, that an insurer failed to properly discharge its duties of good faith and fair dealing… Continue Reading →

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