NO BAD FAITH CLAIM STATED WHERE ONLY ALLEGATION IS THAT INSURER FAILED TO EXPLAIN ITS VALUATION IN OFFERING CLAIM PAYMENT BELOW POLICY LIMITS (Western District)
The insureds valued their UIM claim at $215,000, and settled with the tortfeasor’s insurer for $15,000. They demanded $200,000 policy limits from the UIM carrier, and transmitted a police report and medical records in support of their demand. The insurer offered $15,000 in response, and the insureds sued for breach of contract and bad faith.
The insurer successfully moved to dismiss the bad faith claim, but the insured was given leave to amend.
Western District Judge Horan found the insureds’ complaint failed to “provide any factual support regarding their bad faith claim, other than their allegations that [the] offer of $15,000 failed to cite any reasons for such offer. The [insureds] did not cite any other facts to support their allegation that [the insurer] acted in bad faith. These bare factual assertions, without more, do not state a plausible claim for which relief can be granted.”