NOVEMBER 2012 BAD FAITH CASES: COURT GRANTS SUMMARY JUDGMENT TO CARRIER ON BAD FAITH CLAIM BECAUSE INSURED AND INTERVENOR FAILED TO OPPOSE MOTION (Western District)
In Selective Ins. Co. v. Ferguson, the court heard two motions filed by the carrier of a comprehensive general liability (CGL) policy purchased by the owner of a tree removal business. First, the court addressed the carrier’s Motion for Leave to Amend Complaint and second, the carrier’s Motion for Summary Judgment. The court also examined an intervener’s motion for summary judgment.
The case arose from an accidental shooting that severely injured the claimant in an underlying tort suit. The shooter was an employee of the insured tree removal business. After initially defending the insured under a reservation of rights, the carrier filed a complaint in early 2011 seeking a declaration the insured was not afforded coverage under the CGL policy.
After discovery had concluded, the carrier sought to amend its complaint to add additional policy defenses that would require additional discovery. The carrier also moved for summary judgment as to the insured’s bad faith claim. While the court refused to permit the carrier to amend its complaint, the court did grant the carrier’s motion on the intervener’s bad faith count because neither the insured, nor the intervener, opposed the motion. The intervener’s cross motion had only opposed the carrier’s request for additional discovery as dilatory and futile.
Date of Decision: October 23, 2012
Selective Ins. Co. v. Ferguson, No. 11-74, 2012 U.S. Dist. LEXIS 152015, U.S. District Court for the Western District of Pennsylvania (W.D. Pa. Oct. 23, 2012)