JANUARY 2017 BAD FAITH CASES: THERE CAN BE NO BAD FAITH WHERE THERE IS NO COVERAGE DUE (Western District)
The court found “’there can be no bad-faith claim [for denial of coverage] if the insurer was correct as a matter of law in denying coverage.’” It relied on the oft-cited 1999 Third Circuit opinion in Frog, Switch & Mfg. Co. v . Travelers. As the court had earlier found there was no viable breach of insurance contract claim, there could be no bad faith claim.
The court also addressed a putative failure to adequately investigate the claim. The insurer adduced various steps it had taken; and the insured alleged problems in investigation, but without providing evidence to resist a summary judgment motion.
Summary judgment was granted on all counts to the carrier.
