JUNE 2013 BAD FAITH CASES: DECLARATORY JUDGMENT ACTION DOES NOT CONSTITUTE BAD FAITH WHERE CARRIER WAS ALLEVIATED OF ANY DUTY; LENDER DOES NOT HAVE STANDING TO BRING BAD FAITH CLAIM WHERE MORTGAGE SERVICE COMPANY SUBMITTED INITIAL CLAIM TO INSURER (Philadelphia Federal)

Allied Mortgage Group (“bank one”) provided a mortgage to a client for a real property purchase. The bank also purchased a title insurance policy from…

JUNE 2013 BAD FAITH CASES: COMPLAINT WAS LEGALLY SUFFICIENT TO SURVIVE MOTION TO DISMISS FOR DENIAL OF COVERAGE FOR CLAIMS ARISING FROM DEFAULTED MORTGAGE LOANS VIEWED AS POST-CLAIM UNDERWRITING; AND USE OF 5 EXEMPLARY INCIDENTS OUT OF NEARLY 250 DISTINCT EVENTS LEGALLY SUFFICIENT (Western District)

The court considered whether pleadings alleging bad faith conduct in the handling of claims arising from the mortgage crisis were legally sufficient. Plaintiff is a…