JANUARY 2007 BAD FAITH CASES
CARRIER ALLOWED TO PLEAD “REVERSE BAD FAITH” UNDER A CONTRACT THEORY, AS AN AFFIRMATIVE DEFENSE TO STATUTORY BAD FAITH CLAIM (Middle District)

Print Friendly, PDF & Email

The insured moved to strike the carrier’s affirmative defense of “reverse bad faith.”  The insured argued that Pennsylvania does not recognize a claim for reverse bad faith, which is a claim that the insured acted in bad faith in the handling of his/her claim.  The Court disagreed.

The U.S. District Court reasoned that every contract, including those for insurance, imposes a duty of good faith on each party.

Further, Pennsylvania Courts have previously held that an insured’s bad faith conduct should be scrutinized to militate against a finding of bad faith against the carrier.

The motion to strike was therefore denied.

Date of Decision: November 30, 2006.

Javorski v. Nationwide Mutual Insurance Company, United States District Court for the Middle District of Pennsylvania, No. 3:06-CV-1071 (M.D. Pa. November 30, 2006) (Conaboy, J.).

 

0 Responses to “JANUARY 2007 BAD FAITH CASES
CARRIER ALLOWED TO PLEAD “REVERSE BAD FAITH” UNDER A CONTRACT THEORY, AS AN AFFIRMATIVE DEFENSE TO STATUTORY BAD FAITH CLAIM (Middle District)”


Comments are currently closed.