NO BAD FAITH WHERE (1) NO EVIDENCE OF BAD FAITH OFFERED AND (2) NO COVERAGE DUE UNDER A POLICY EXCLUSION (Philadelphia Federal)

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An “entrustment” exclusion precluded coverage in this property damage case. After the court’s lengthy analysis reaching this conclusion, it addressed the insured’s bad faith claims. Notably, neither party briefed the bad faith issue, even though the insurer moved for summary judgment on that claim as well as the breach of contract claim.

The court readily granted judgment on the bad faith claim, stating: “The record is devoid of any evidence that Defendant denied coverage to Plaintiff in bad faith and, what is more, the Court has already determined that Defendant’s denial of coverage was proper based on the entrustment exclusion of the Policy. Accordingly, there is no basis for finding that Defendant acted in bad faith, and summary judgment is appropriate.”

Date of Decision: January 25, 2019

KA Together, Inc. v. Aspen Specialty Insurance Co., U.S. District Court Eastern District of Pennsylvania CIVIL ACTION NO. 18-142, 2019 U.S. Dist. LEXIS 12184, 2019 WL 325319 (E.D. Pa. Jan. 25, 2019) (Slomsky, J.)

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