Archives: Bad Faith

Subscribe to Bad Faith RSS Feed

Insurance Bad Faith in the Virgin Islands

In the aftermath of Hurricanes Irma and Maria, the two-catastrophic category five hurricanes that struck the U.S.V.I. in the space of twelve days, many residents are still in survival mode as they deal with the lingering psychological and physical damage. As the resilient Virgin Islanders continue to rebuild, the next ordeal for those affected will … Continue Reading

Colorado Allows Contractors to Bring Statutory Bad Faith Claim as First-Party Claimant

With its 2008 enactment of Colorado Revised Statute § 10-3-1115 and § 10-3-1116, Colorado has created one of the country’s strongest statutory bad faith causes of action. What makes Colorado’s bad faith statute even more exceptional is that it allows a repair vendor, such as a roofer or restoration contractor, to assert a claim for … Continue Reading

Supreme Court of Pennsylvania Upholds Bad Faith Standards But Does Not Require a Showing of Malicious Intent

In Pennsylvania, 42 Pa.C.S. § 8371 permits an insured to recover punitive damages, court costs, attorney’s fees and interest, on claims where an insurer has acted in bad faith. On September 28, 2017, the Supreme Court of Pennsylvania issued a ruling1 upholding the current bad faith standards and specifically noting that an insured does not … Continue Reading

Court Finds Policyholders are Entitled to Bad Faith Discovery

Insurance companies hate producing its claims guidelines, loss ratios, and other relevant documents in bad faith litigation. Recently, a Nebraska federal trial court denied Owners Insurance Company’s request to bifurcate my client’s bad faith claim from its breach of contract claim. This ruling prevents unnecessary costs and delay and will allow the insured its day … Continue Reading

Colorado Statutory Bad Faith: Doubling Down On An Insurer’s Unreasonable Delay Or Denial

In August 2008, Colorado created a statutory bad faith claim of action for first-party policyholders not only separate and distinct from a claim for common law bad faith breach of an insurance contract, but establishes a much more reasonable threshold to prevail against an insurer under Colorado Revised Statute § 10-3-1115 and Colorado Revised Statute … Continue Reading

Insurance Bad Faith Can Also Be Found When an Insurer Fails to Properly Investigate the Claim

Insurance Codes are regulated by each state, but ask any insurance company representative in any state and they will tell you it is an insurance company’s duty to place the insured’s interest ahead of the insurance company’s interests; and the proper way to handle a claim is to find coverage wherever possible.… Continue Reading

Insurance Bad Faith in South Carolina: Part 1

We are often asked by policyholders and public adjusters whether bad faith damages are recoverable against an insurance company in a particular state and what an insured must prove. Our blog has many articles related to this topic. Today I will address insurance bad faith in South Carolina.… Continue Reading

Insurance Dispute Stemming from Denial of Coverage for Stolen Baseball Card Collection Highlights Bad Faith Claims Handling

The Arizona Court of Appeals recently overturned a trial court’s dismissal of an insured’s bad faith case stemming from a disagreement with an insurance company over coverage for a stolen baseball card collection.1 As a kid who grew up collecting baseball cards, I took particular interest in this case.… Continue Reading

Payment of an Appraisal Award Does Not Foreclose Insured’s Claim for Vexatious and Unreasonable Conduct in Illinois

Often an insurer will assert that their payment of an appraisal award has satisfied their obligation under the policy such that an action for “bad faith” cannot be brought. An insurer recently raised this issue in a motion to dismiss against our client arguing that the insured’s right to bring a claim for damages under … Continue Reading

The Genuine Dispute Defense and Bad Faith

Insurers often seek to avoid liability for bad faith by asserting the “Genuine Dispute Doctrine.” Under the genuine dispute rule, an insurer’s coverage or claim decision may not be in bad faith when it mistakenly withholds policy benefits, if the mistake is reasonable and is based on a legitimate dispute as to the insurer’s liability.1… Continue Reading

Court Finds Unreasonable Underpayment of Claim Sufficient Evidence of Bad Faith to Survive Motion to Dismiss

It is generally understood that a disagreement as to scope or cost of damages is not enough to rise to the level of bad faith in first-party property damage cases. However, a recent case out of the Western District of Oklahoma held that evidence of unreasonable underpayment of claim was sufficient to survive a 12(b)(6) … Continue Reading
LexBlog