ASSIGNMENT TO FORMER ATTORNEY NOT PERMITTED; STATE COURT COMPLAINT FAILS TO ALLEGE SUFFICIENT FACTS TO PLEAD BAD FAITH (Superior Court of Pennsylvania) (Not precedential)

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In this non-precedential decision, Pennsylvania’s Superior Court followed federal case law out of the Eastern District, Feingold v. Liberty Mutual, in holding that a client’s bad faith claim could not be assigned to her former attorney. [Note: In Allstate v. Wolfe, Pennsylvania’s Supreme Court did find it possible to assign bad faith claims within certain parameters. The holding in that case identified two proper classes of assignees: “We conclude that the entitlement to assert damages under Section 8371 may be assigned by an insured to an injured plaintiff and judgment creditor….”]

The court also found that “the complaint does not include sufficient factual averments regarding how [the insurer] acted unreasonably and in bad faith. …  the complaint contains ‘either simple reiterations of the standard of proving bad faith or bald allegations that the standard has been breached.’”

This last point is consistent with numerous federal cases finding that adequate pleading must include allegations of fact.

Date of Decision: August 14, 2020

Feingold v. McCormick & Priore PC, Superior Court of Pennsylvania No. 3273 EDA 2019, 2020 WL 4728111 (Pa. Super. Ct. Aug. 14, 2020) (King, Lazarus, Strassburger, JJ.) (Not precedential)

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