Mealey's Insurance Bad Faith : Mealey's : Legal News & Analysis

Mealey's Insurance Bad Faith

May 03, 2024
Federal Judge Finds No Jurisdiction In Construction Insurance Dispute, Remands

SAN FRANCISCO — A federal judge in California remanded to state court a construction insurance dispute brought by a contractor alleging that its insurer acted in bad faith when it refused to pay for most of an arbitration award related to a faulty roof, finding that the insurer failed to join necessary parties when removing the case to federal court.
May 03, 2024
Louisiana Panel Affirms Ruling In Suit Arising From Hurricanes Laura, Delta

LAKE CHARLES, La. — A Louisiana appeals panel affirmed a lower court’s ruling in favor of a church, its attorneys and its property insurer in a pro se litigant’s lawsuit alleging that they settled a hurricanes Laura and Delta property damage action in bad faith, finding that the lower court did not abuse its discretion in denying the appellant’s motion to recuse.
May 03, 2024
Insurer’s Dismissal Bid Granted In Estate’s Suit Seeking $4M Default Judgment

COLUMBIA, S.C. — A South Carolina federal judge dismissed with prejudice an estate’s bad faith suit against an insurer to enforce a $4 million default judgment the estate obtained against a nursing home regarding attempted sexual assault of a former resident, finding that the policy issued to the insured, a health care limited liability company, does not cover claims made against the nursing home, which is a purported subsidiary of the company.
May 03, 2024
Disability Insurer Awarded More Than $11,000 In Costs In Bad Faith Benefits Suit

FRESNO, Calif. — A California federal magistrate judge awarded a disability insurer more than $11,000 in costs that the insurer incurred in successfully defending a breach of contract and bad faith suit lodged against it by an oral surgeon who stopped working to reduce the risk of contracting COVID-19 and suffering complications from the virus based on his comorbid conditions of asthma and hypertension.
May 03, 2024
Insureds’ Bad Faith Suit Dismissed For Failure To File Compliant Civil Remedy Notice

FORT LAUDERDALE, Fla. — A Florida federal judge adopted a magistrate judge’s recommendation and granted an insurer’s motion to dismiss its insureds’ bad faith suit, agreeing with the magistrate judge that the suit could not proceed based on the insureds’ failure to file a compliant civil remedy notice (CRN) as required under Florida law before filing the bad faith suit against the insurer.
May 02, 2024
Disability Insurer, Claimant Settle Dispute Over Policy’s Monthly Benefit Rider

SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals entered an order staying a disability claimant’s appeal and directing the parties to file a joint status report following the disability insurer’s filing of a notice of a settlement between the parties.
May 01, 2024
10th Circuit: Insurer’s Coverage Denial For Steel Collapse Not In Bad Faith

DENVER — A 10th Circuit U.S. Court of Appeals panel on April 30 affirmed a Wyoming federal judge’s finding that a building owner insured is owed no coverage under an insurance policy’s additional abrupt collapse coverage, finding that the building owner did not show that the insurer or its claims service manager acted in bad faith.
May 01, 2024
Bad Faith Claim Related To A Portion Of Insurer’s Conduct Will Proceed

MIAMI — An automobile insurer is not entitled to summary judgment on a bad faith claim pertaining to its conduct prior to a tort suit being filed against its insureds because sufficient evidence could support a finding that the insurer acted in bad faith in failing to promptly settle a claim related to a motorcycle accident for which its insured was liable, a Florida federal judge said.
April 30, 2024
Policy Limit Paid For Hurricane Damage; Breach Of Contract, Bad Faith Claims Fail

NEW ORLEANS — A Louisiana federal judge on April 29 granted a homeowners insurer’s motion to dismiss breach of contract and bad faith claims brought by an insured whose home was damaged during Hurricane Ida because the insurer paid the policy limits owed to the insured and the insured failed to include any facts in support of the claims.
April 30, 2024
Jury Finds Insurer Violated Unfair Claim Settlement Practices Act In Irma Suit

MIAMI — A Florida federal jury held that a homeowners insurer did not act in bad faith but that it did violate Florida’s Unfair Claim Settlement Practices Act in a coverage dispute over property damage to a 28,000-square-foot ocean-front home caused by Hurricane Irma.
April 30, 2024
Insured’s Driver Did Not Meet Policy’s Driver Requirement, Indiana Panel Says

INDIANAPOLIS — A trial court properly granted an insurer’s motion for summary judgment on breach of contract and bad faith claims because the driver of the insured tractor-trailer did not meet the policy’s driver-qualification requirement, the Indiana Appeals Court said in affirming the trial court’s ruling.
April 30, 2024
Insurer, Insured Reach Settlement In Water Damage Coverage Suit

SAN FRANCISCO — An insurer filed a notice of settlement in California federal court after reaching a settlement with its insured in a suit seeking coverage for water damages to the insured’s business.
April 26, 2024
Insured Files Notice Of Cross-Appeal To 7th Circuit In Environmental Coverage Suit

SOUTH BEND, Ind. — An insured that was awarded more than $115 million by an Indiana federal jury on breach of contract and bad faith claims in a coverage suit stemming from the insured’s request for coverage costs related to the cleanup of polychlorinated biphenyls (PCBs) filed a notice of cross-appeal to the Seventh Circuit U.S. Court of Appeals.
April 25, 2024
Life Insurer Did Not Breach Contract, Act In Bad Faith, Panel Majority Says

NEW ORLEANS — A life insurer did not breach its contract or act in bad faith by discontinuing automatic payment withdrawals for a life insurance premium after the premium increased because the insured did not provide consent for the automatic withdrawals to continue after the premium increased as required by the contract, the majority of the Fifth Circuit U.S. Court of Appeals said April 24 in affirming a district court’s ruling.
April 25, 2024
Bid For Ruling As To Coverage Exclusions Is Disputed In Suit Over Water Damage

PHOENIX — In a reply brief challenging arguments by an insurer and reinsurer that the ruling it seeks would be advisory, the insured tells an Arizona federal court that what it is really requesting is a proper “partial summary adjudication . . . on two issues of law that are critical in this insurance coverage and bad faith action” over water damage.
April 23, 2024
Immediate Appeal Of Breach Of Contract Ruling Is Not Warranted, Judge Says

SEATTLE — A Washington federal on April 22 judge denied an auto insurer’s motion to certify a breach of contract claim ruling to allow the auto insurer to appeal the judge’s summary judgment ruling in favor of the insured on the breach of contract claim because the auto insurer failed to show that an immediate appeal would advance the litigation.
April 23, 2024
Bad Faith Claim Against Auto Insurer Fails To Allege Sufficient Facts, Judge Says

PHILADELPHIA — A Pennsylvania federal judge on April 22 dismissed an insured’s bad faith claim without prejudice after determining that the insured failed to allege sufficient facts in support of his contention that his auto insurer acted unreasonably or unfairly in handling his claim for underinsured motorist (UIM) benefits.
April 23, 2024
Skiing Accident Coverage Dispute Transferred To District Of Arizona

SEATTLE — A Washington federal judge transferred a breach of contract and bad faith suit filed by the assignee of an insured to Arizona federal court after determining that Arizona is the more proper venue because the skiing accident occurred in Arizona and the witnesses to the accident and the assignee’s medical providers are located in Arizona.
April 19, 2024
Auto Insurers Failed To Comply With Colorado Law, Panel Says In Reversing Judgment

DENVER — The Colorado Court of Appeals on April 18 reversed a trial court’s ruling in favor of two auto insurers in a dispute over an insured’s claims for underinsured motorist (UIM) benefits after determining that the insurers’ failure to comply with the requirements of a Colorado law prevents the insurers from asserting that the insured breached his duty to cooperate under the policies.
April 18, 2024
N.J. Panel Affirms Order Granting Judgment For Progressive In Auto Claim Row

TRENTON, N.J. — A New Jersey appellate court on April 17 affirmed a lower court order granting summary judgment to Progressive Insurance Co. in its insured’s breach of contract and bad faith suit after Progressive denied the insured’s auto accident claim for alleged misrepresentation in the policy application, finding “no reason to second-guess” the lower court’s finding that the insured “lacked standing to pursue a claim for the payoff of her lease.”
April 18, 2024
No Additional Coverage Owed For Water Damages Caused By Sewer, Drain Backup

MEMPHIS, Tenn. — An insured is not entitled to additional coverage for water damage incurred at its property because the policy at issue provides only $5,000 in coverage for water damage caused by sewer or drain backups, a Tennessee federal judge said in granting the insurer’s motion for summary judgment on claims for breach of contract, bad faith, misrepresentation and negligent actions.
April 18, 2024
Commercial Property Insurer’s Removal Notice Was Timely Filed, Federal Judge Says

DALLAS — A commercial property insurer’s notice of removal of a breach of contract and bad faith suit was timely filed because the insurer filed the notice of removal within 30 days of learning that complete diversity of citizenship among the parties existed, a Texas federal judge said in denying the insured’s motion to remand the suit to state court.
April 18, 2024
Breach Of Contract, Bad Faith Claims To Proceed Against Landlord Insurer

OKLAHOMA CITY — Breach of contract and bad faith claims filed against an insurer can proceed because the insureds, who are seeking coverage for damage to the roof of their rental property, identify and describe specific actions to support of the claims, an Oklahoma federal judge said in denying the insurer’s motion to dismiss.
April 18, 2024
Trial Court Properly Entered Judgment For Insurers In Water Damage Coverage Suit

HARTFORD, Conn. — A trial court properly granted summary judgment in favor of insurers on breach of contract and extracontractual claims in a dispute over coverage for water damage in their home because no issues of fact exist regarding which insurer issued the homeowners policy at issue in the dispute, a panel of the Connecticut Appellate Court said in affirming the trial court’s ruling.
April 18, 2024
Chapter 11 Liquidation Plan Becomes Effective In Vesttoo Bankruptcy Cases

WILMINGTON, Del. — In a notice outlining several bar dates, the Official Committee of Unsecured Creditors told a Delaware federal bankruptcy court that a Chapter 11 plan of liquidation for Vesttoo Ltd. and its dozens of affiliates went into effect after conditions precedent were “satisfied or waived.”