Daily Archive for November 26th, 2006

NOVEMBER 2006 BAD FAITH CASES
BAD FAITH CLAIM DISMISSED FOR LACK OF PROSECUTION (Philadelphia)

Published on November 26, 2006 in Procedural Issues. Closed

In Luff v. Allstate Insurance Company, Plaintiff passenger filed an underinsured motorist (UIM) claim against Defendant insurer.  The Philadelphia Court of Common Pleas entered a judgment of non pros.  The Court determined that Plaintiff had no substantive claims to appeal as she failed to file a Pa.R.C.P. 3051 petition for relief from judgment of non pros.  In addition, Plaintiff failed to proceed with due diligence by, among other things, creating delays in the claim and the case by failing to provide medical records and then bringing suit against the parties involved.  Further, Plaintiff appealed a court order directing payment of the first arbitrator’s fee and refused to pay the second arbitrator’s request for advance partial payment.  The Court found that Plaintiff’s reasons for delay were not compelling as she was responsible for moving her case forward, not to mention Defendants were prejudiced as the case was inactive for over four years and the underlying accident had occurred 14 years earlier.

Date of Decision:  October 27, 2006

Luff v. Allstate Ins. Co., Court of Common Pleas of Philadelphia County, May Term 2001, No. 02561, 2006 Phila. Ct. Com. Pl. LEXIS 422 (Phila. Ct. Com. Pl. October 27, 2006) (Moss, J.)

 
    

NOVEMBER 2006 BAD FAITH CASES
MVFRL PREEMPTS BAD FAITH STATUTE (Middle District)

Published on November 26, 2006 in Procedural Issues. Closed

In Cronin v. State Farm Mutual Automobile Insurance Company, Plaintiff alleged that he was injured in a motor vehicle accident and Defendant refused to pay medical and wage loss benefits in bad faith.  Defendant argued that Pennsylvania’s Bad Faith Statute was preempted by the Pennsylvania Motor Vehicle Financial Responsibility Law (“MVFRL”), which provides that an insured seeking first party medical benefits may be entitled to benefits plus interest, as well as costs and attorneys’ fees, if the court finds that treatment was medically necessary.  The United States District Court for the Middle District of Pennsylvania looked to federal case law, which has held that the MVFRL provides the exclusive first party remedy for bad faith denials by insurance companies with respect to claims arising out of automobile accidents.  Thus, the Court held that the MVFRL preempted Pennsylvania’s Bad Faith statute and dismissed Plaintiff’s claim.

Date of Decision:  October 30, 2006

Cronin v. State Farm Mut. Auto. Ins. Co., United States District Court for the Middle District of Pennsylvania, No. 3:06-CV-1081, 2006 U.S. Dist. LEXIS 82139 (M.D. Pa. October 30, 2006) (Caputo, J.)