MAY 2013 BAD FAITH CASES: COURT GRANTS CARRIER’S SUMMARY JUDGMENT MOTION BECAUSE INSURED FAILED TO ALLEGE A CLAIM FOR BAD FAITH (Philadelphia Federal)
In Quinn v. Liberty Mut. Group, the carrier filed for summary judgment on a claim for bad faith brought by the representative of an insured decedent’s estate (see this post). The decedent sustained serious injuries as the result of a car accident with an uninsured motorist. The carrier refused to pay an arbitration award and the representative filed suit for bad faith.
The carrier claimed that it acted with the reasonable belief that New Jersey law applied, which would permit them to properly reject the arbitration award and demand a trial.
The court granted the carrier’s motion, reasoning that it did not need to decide whether Pennsylvania or New Jersey law applied because the claimant’s allegations were insufficient to sustain a finding of bad faith.
Date of Decision: March 7, 2013
Quinn v. Liberty Mut. Group, No. 11-5364, 2013 U.S. Dist. LEXIS 31194, U.S. District Court for the Eastern District of Pennsylvania (E.D. Pa. Mar. 7, 2013) (Bartle, J.)