BAD FAITH CLAIM CAN ONLY BE ASSIGNED TO UNDERLYING PLAINTIFF AND JUDGMENT CREDITOR (Third Circuit – Pennsylvania Law)

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In this case, the Third Circuit upheld the principle that a statutory bad faith claim can only be assigned to the underlying injured plaintiff and judgment creditor. As the bad faith plaintiff in this case was neither, the case was dismissed.

Date of Decision: December 24, 2020

Feingold v. Palmer & Barr, U.S. Court of Appeals for the Third Circuit No. 19-2621, 2020 WL 7663209 (3d Cir. Dec. 24, 2020) (Ambro, Matey, Roth, JJ.)