JULY 2015 BAD FAITH CASES: (1) INSURANCE BAD FAITH STATUTE DOES NOT APPLY TO SURETIES; (2) PRINCIPLES ALLOWING AWARD OF ATTORNEY’S FEES FOR BAD FAITH CONDUCT IN BRINGING/DEFENDING/PURSUING LITIGATION CANNOT BE USED TO END RUN THE INSURANCE BAD FAITH STATUTE (Philadelphia Federal)

In Board of Trustees, Roofers Union Local 30 v. Liberty Mutual Insurance Company the court reiterated, with thorough citation of authority, that Pennsylvania’s insurance bad…

PENNSYLVANIA SUPREME COURT ADOPTS FAIR AND REASONABLE STANDARD FOR INSURED’S UNILATERALLY SETTLING CLAIMS WHERE: (1) THE INSURER REFUSES TO SETTLE, (2) THE INSURER HAS ISSUED A RESERVATION OF RIGHTS LETTER ON CLAIMS AT ISSUE, AND (3) COVERAGE IS ULTIMATELY DUE (Pennsylvania Supreme Court)

In Babcock & Wilcox Co. v. American Nuclear Insurers, Pennsylvania’s Supreme Court had to determine under what circumstances an insured being defended under a reservation…

JULY 2015 BAD FAITH CASES: FIRST PARTY BAD FAITH PLAINTIFF FAILED TO PLEAD FACTS MEETING STANDARDS FOR A PLAUSIBLE CAUSE OF ACTION; AND INSTEAD PLEADED FACTS THAT MADE THE INSURER’S CONDUCT REASONABLY DEBATABLE, RENDERING ANY EFFORT TO ADD A BAD FAITH CLAIM FUTILE (New Jersey Federal)

In Mitra v. Principal Ins. Co., the insured sought to amend his complaint against his disability insurer, to add a claim for breach of the…

JULY 2015 BAD FAITH CASES: SUPERIOR COURT FINDS (1) INSUREDS WAIVED APPELLATE REVIEW OF BAD FAITH CLAIMS BASED UPON DEFICIENCIES WITHIN INSUREDS’ Pa.R.A.P. 1925(b) STATEMENT; (2) INSUREDS’ BAD FAITH CLAIMS ARE TIME-BARRED IN ANY EVENT (Superior Court of Pennsylvania, Non-Precedential)

In Mountainside Holdings, LLC v. American Dynasty Surplus Lines Ins. Co., the defendant insurers were excess directors and officers liability insurance carriers at the tertiary…

JULY 2015 BAD FAITH CASES: (1) COURT DISMISSES BREACH OF IMPLIED DUTY OF GOOD FAITH AND FAIR DEALING CLAIM BECAUSE (i) IT CANNOT BE PLEADED SEPARATELY FROM A BREACH OF CONTRACT CLAIM AND (ii) BECAUSE THE ALLEGATIONS SUPPORTING THAT CLAIM WERE IDENTICAL TO THOSE SUPPORTING THE STATUTORY BAD FAITH CLAIM; AND (2) COURT ENTERS JUDGMENT FOR INSURER ON BAD FAITH CLAIM AFTER FINDING THAT INSURED, AS ASSIGNEE, RELEASED INSURER FROM ANY CLAIMS (Eastern District)

In Charbonneau v. Chartis Property Casualty Company, the court dismissed an assignee’s claims for breach of implied duty of good faith and fair dealing because…