A homeowner’s fallen tree damaged her neighbor’s property. The neighbor and her carrier sued for damages. The homeowner’s insurer asserted that its policy did not provide liability coverage for such claims, and refused to defend or indemnify the homeowner against the neighbor’s claims. The insured sued for breach of contract and bad faith.
Philadelphia Federal Judge McHugh agreed no coverage was due, and granted the insurer’s summary judgment motion on the breach of contract claim. He likewise granted summary judgment on the bad faith claim, stating,
Because I have found that the insurer here was not obligated to cover the Plaintiff for the disputed claims, by definition the insurer had a reasonable basis to deny the benefits. See USX Corp. v. Liberty Mutual Ins. Co., 444 F.3d 192, 202 (3d Cir. 2006). [Emphasis added]
Walker v. Foremost Ins. Co. Grand Rapids, Michigan, U.S. District Court Eastern District of Pennsylvania No. CV 20-4966, 2022 WL 612716 (E.D. Pa. Mar. 2, 2022) (McHugh, J.)