SEPTEMBER 2018 BAD FAITH CASES: WHERE NO DEFENSE DUE COURT MUST DISMISS BAD FAITH CLAIM (Philadelphia Federal)

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The court found there was no duty to defend under a title insurance policy. Citing the seminal Frog Switch case, the court observed: “Importantly, where there [is] no duty to defend, there [is] good cause to refuse to defend against suit.” The court then concluded, “[b]ecause we have already held that [the insurer] is entitled to summary judgment based on the finding that it did not have a duty to defend … in the Underlying Action, we must also find that [the insurer] had good cause to refuse [the] request for coverage. Accordingly, we grant summary judgment in favor of [the insurer] on [the] bad faith claim.”

Date of Decision: August 23, 2018

631 North Broad Street, L.P. v. Commonwealth Land Title Insurance Co., U.S. District Court Eastern District of Pennsylvania, CIVIL ACTION NO. 17-02805, 2018 U.S. Dist. LEXIS 143904 (E.D. Pa. Aug. 23, 2018) (Joyner, J.)

This opinion was affirmed by the Third Circuit.  See Blog post here.

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