SEPTEMBER 2012 BAD FAITH CASES: COURT RULES THAT LIMITATIONS PERIOD FOR COMMON-LAW BAD FAITH CLAIM STARTS WHEN VERDICT IN UNDERLYING CLAIM IS RENDERED, NOT WHEN THE RIGHT TO INSTITUTE A SUIT AGAINST CARRIER ARISES, AND THEN REJECTS CLAIM AS CARRIER HAD REASONABLE BASIS NOT TO SETTLE (Philadelphia Federal)

In Katzenmoyer v. Allstate Ins. Co., the court heard cross-motions for summary judgment stemming from an insurance dispute. A person was injured while driving with…

SEPTEMBER 2012 BAD FAITH CASES: CARRIER MAY ASSERT SUIT LIMITATION CLAUSE AS A DEFENSE TO BAD FAITH CLAIM WHERE SUIT IS NOT BASED ON CARRIER’S DECEPTION AS TO THE APPLICABILITY OF THOSE LIMITATIONS; USE OF EXPERT NOT BAD FAITH (Western District)

In Palmisano v. State Farm Fire & Cas. Co., the court heard a carrier’s motion to dismiss the insureds’ complaint alleging breach of contract and…

SEPTEMBER 2012 BAD FAITH CASES: COURT CONSTRUES AMBIGUOUS CHOICE OF UIM BENEFITS IN FAVOR OF INSURED, BUT RULES THAT CARRIER’S TENDER OF LOWER AMOUNT WAS NOT IN BAD FAITH BECAUSE OF THE INSURED’S UNCLEAR RESPONSE ON POLICY SELECTION FORM (Philadelphia Federal)

In Olender v. Nat’l Cas. Co., the court heard cross-motions for summary judgment stemming from the carrier’s denial of benefits under the insured’s under insured…