PARTY WITH JUDGMENT FOR ATTORNEY’S FEES AGAINST AN INSURED DID NOT HAVE STANDING TO PURSUE THAT JUDGMENT AGAINST THE INSURER IN A BAD FAITH ACTION (Philadelphia Federal)

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Though not clearly pleaded, the court assumed the plaintiff was suing the carrier for insurance bad faith. The plaintiff, however, was not the insured. Rather, plaintiff had obtained a judgment against the insured for reimbursement of $276,000 in attorney’s fees and legal costs, per a contract between the plaintiff and the insured.

The court found the plaintiff had no standing to bring a claim against the insurer. It was not a third party beneficiary to the insurance contract, nor could it bring a direct action aginst the insurer. Thus, the court dismissed the complaint.

Date of Decision: January 23, 2020

Hensley v. CNA, U. S. District Court Eastern District of Pennsylvania CIVIL ACTION NO. 19-2837, 2020 U.S. Dist. LEXIS 11040 (E.D.Pa. Jan. 23, 2020) (Baylson, J.)

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