SEPTEMBER 2018 BAD FAITH CASES: NO BAD FAITH WHERE CARRIER’S DECISIONS BASED ON REASONABLE POLICY INTERPRETATION (Philadelphia Federal)
In this case, involving a debris removal policy provision, the court dismissed the bad faith claim. There was no averment that the carrier lacked a reasonable basis for its decision to withhold debris removal funds. The court further found that the carrier’s determination to reduce the appraised loss sum by the cost of demolition and debris removal was based on a reasonable interpretation of the policy.
