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Mealey's Insurance Bad Faith

  • February 25, 2026

    5th Circuit Refuses To Reconsider Ruling In Insurer’s Favor In Coverage Dispute

    NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on Feb. 24 denied an insured’s petition to reconsider its ruling that affirmed a lower federal court’s grant of summary judgment in favor of an insurer in a breach of contract and bad faith lawsuit, standing by its ruling that the insured failed to provide evidence suggesting that hail occurred within the relevant policy period and, as a result, did not establish a genuine dispute of material fact regarding whether covered damage occurred.

  • February 25, 2026

    Judge: No Reasonably Clear Evidence Of Bad Faith In Hurricane Beryl Coverage Suit

    HOUSTON — A federal judge in Texas granted an insurer’s motion for partial summary judgment as to the insured’s claim that it violated Texas Insurance Code Chapter 541 when it underpaid a claim for property damage that was caused by Hurricane Beryl, concluding that there is no “reasonably clear” evidence that the insurer acted in bad faith.

  • February 25, 2026

    Texas Federal Judge Finds Most Of Insured’s Claims Stand In Payment Dispute

    DALLAS — A federal judge in Texas, in partially denying an insurance carrier’s motion for summary judgment, ruled that breach of contract and Texas insurance law claims that a homeowner brought against his insurer regarding coverage of damages after a pipe burst will survive but that a common-law bad faith claim will be dismissed.

  • February 24, 2026

    Preliminary Injunction Bid Denied In Captive Insurance Trade Secrets Case

    PHOENIX — An Arizona federal judge denied a motion for a preliminary injunction filed by an insurance brokerage firm in a trade secrets dispute, ruling that although the firm showed a likelihood of success on its breach of contract claim, it failed to establish the existence of a legally protectable trade secret or imminent irreparable harm.

  • February 23, 2026

    Insureds’ Claims Foreclosed By Homeowners Insurer’s Payment, Magistrate Judge Says

    SHERMAN, Texas — A federal magistrate judge recommended granting a homeowners insurer’s motion for summary judgment on breach of contract and extracontractual claims and denying the insureds’ motion to vacate an appraisal award after determining that the insureds failed to meet their burden of proving that the appraisal award was premised on a mistake of fact and that the insureds’ claims are foreclosed by the insurer’s timely payment of the appraisal award.

  • February 20, 2026

    Oklahoma Law Bars Arbitration Of Storm Damage Insurance Dispute, Judge Says

    OKLAHOMA CITY — An Oklahoma federal judge denied a group of insurers’ motion to compel arbitration of a dispute over an insured’s claim for storm damage to a commercial property under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention), opining that Oklahoma state law reverse-preempts the convention and bars arbitration of this type of insurance dispute.

  • February 20, 2026

    Settlement Reached After Counterclaims Dismissed In Coverage Dispute Over Fire

    BOISE, Idaho — The parties to a coverage dispute over fire damage after a construction worker discarded oil-soaked rags reached a settlement after a federal judge in Idaho granted the insurer’s motions to dismiss bad faith counterclaims filed by the construction company and seller of the property because they did not allege sufficient facts to support the counterclaims.

  • February 20, 2026

    Insurer Reasonably Relied On Engineer’s Report; Bad Faith Claim Fails, Judge Says

    TUSCALOOSA, Ala. — A farm owner’s bad faith claim against an insurer cannot proceed because the insurer reasonably relied on an engineer’s report when it partially denied coverage for damage to two poultry houses based on the policy’s wear and tear exclusion, weight of snow and ice exclusion and improper workmanship exclusion, an Alabama federal judge said in granting the insurer’s motion for summary judgment.

  • February 20, 2026

    Insurer’s Partial Payment For Storm Damage Was Arbitrary, Capricious, Insureds Say

    AUSTIN, Texas — A homeowners insurer’s failure to promptly and adequately pay its insureds for the full value of their claim for damages to their home caused by a hail and windstorm was arbitrary and capricious, the insureds maintain in a complaint filed in Texas federal court.

  • February 19, 2026

    Breach Of Contract Claim Is Only Claim To Proceed Against Homeowners Insurer

    SYRACUSE, N.Y. — An insured’s claim for breach of the covenant of good faith and fair dealing must be dismissed as it is duplicative of the insured’s breach of contract claim, a New York federal judge said after also determining that the insured’s request for extracontractual damages cannot proceed.

  • February 19, 2026

    Judge Allows Experts, Certifies Class On Whether UM/UIM Coverage Properly Applied

    PHOENIX — An Arizona federal judge agreed to certify a class action alleging that an insurer underpaid insureds by failing to stack uninsured motorist (UM) or underinsured motorist (UIM) coverage for policyholders who had multivehicle policies and rejected efforts by the insurer to exclude expert testimony on class certification.

  • February 18, 2026

    Stay Granted In Auto Accident Coverage Dispute Involving Insolvent Insurer

    LAS VEGAS — After being advised that plaintiffs are seeking administrative remedies in a bad faith breach of contract dispute involving an insolvent insurer regarding coverage for an auto accident that resulted in deaths and injuries, a Nevada federal judge granted the plaintiffs’ motion for a stay.

  • February 18, 2026

    Bifurcation In UIM Benefits Suit Not Warranted, Federal Magistrate Judge Says

    LAS CRUCES, N.M. — A New Mexico federal magistrate judge denied an auto insurer’s motion to bifurcate an insured’s claim seeking underinsured motorist (UIM) benefits from the insured’s extracontractual claims after determining that the extracontractual claims are not contingent on the success of the UIM benefits claim.

  • February 17, 2026

    Calif. Federal Judge Rules On 20 Motions In Limine In Aircraft Insurance Dispute

    SAN DIEGO — A California federal judge granted in part, denied in part and reserved ruling in part on a series of cross-motions in limine in a private jet insurance coverage dispute, excluding evidence of reinsurance and loss reserves, bifurcating punitive damages, limiting expert and regulatory evidence and reserving authentication and hearsay objections to competing insurance proposals for determination at trial.

  • February 13, 2026

    Pa. Federal Judge Partly Grants Motion To Compel In LTD Benefits Case

    WILLIAMSPORT, Pa. — A Pennsylvania federal judge on Feb. 12 declined to compel production of “batting average” information and communications concerning state or federal investigations but ordered the administrator of a group long-term disability (LTD) policy to provide some of the information a claimant seeks regarding incentives for insurance adjusters and reviewing physicians, the administrator’s review policies and procedures and its use of a third-party medical review company.

  • February 13, 2026

    Breach Of Contract, Bad Faith Claims Will Proceed Against Insurer, Judge Says

    TULSA, Okla. — Breach of contract and bad faith claims will proceed against a homeowners insurer in federal court, an Oklahoma federal judge said after determining that the insureds’ suit was properly removed to federal court because complete diversity of citizenship exists as the insureds’ claims against the insurer’s agent fail.

  • February 13, 2026

    2 Of Assignee’s Claims Against Auto Insurer Can Proceed, Federal Judge Says

    LAS VEGAS — Claims alleging breach of contract and breach of the implied covenant of good faith and fair dealing brought by the assignee of an insured against an auto insurer can proceed because a question of fact exists as to when the insured knew or should have known that he was injured, a Nevada federal judge said in partially denying the insurer’s motion for summary judgment.

  • February 11, 2026

    Question Of Fact Exists As To Whether Auto Insurer Acted In Bad Faith, Judge Says

    PHOENIX — An insured’s bad faith claim against an auto insurer can proceed, an Arizona federal judge said, after determining that a question of fact exists as to whether the insurer’s refusal to pay its policy limit until after an arbitration award was entered in favor of the insured constitutes bad faith.

  • February 11, 2026

    Panel Affirms Judgment In Insurer’s Favor In Bad Faith Suit Arising From Hurricane

    NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on Feb. 10 affirmed a lower federal court’s judgment in favor of an insurer in Louisiana insureds’ breach of contract and bad faith lawsuit arising from Hurricane Ida damage, rejecting the insureds’ argument that the lower court reversibly erred in excluding both evidence of the insureds’ appraisal award amount and the appraiser’s position regarding the value of their damages.

  • February 11, 2026

    Extracontractual Claims Against Homeowners Insurer Are Not Supported, Judge Says

    GREENVILLE, Miss. — Extracontractual claims alleged against a homeowners insurer in a coverage dispute over water damage to the insureds’ home cannot proceed because the insureds failed to provide sufficient facts to support their claim for bad faith and failed to show that the insurer owed a duty of care independent of the insurance contract to support their claim for negligence, a Mississippi federal judge said in granting the insurer’s motion to dismiss.

  • February 10, 2026

    Disability Determination, Other Issues Briefed Before 6th Circuit In Benefits Case

    CINCINNATI — Arguing in part that the claimant’s “proven ability to work coupled with the improvement documented by her own treating providers” was sufficient to show that she was not totally disabled under the terms of the long-term disability (LTD) plan, appellants urged the Sixth Circuit U.S. Court of Appeals to affirm denial of benefits for a project director who stopped working because of symptoms she attributed to long COVID.

  • February 06, 2026

    Federal Jury: Insurer Acted In Bad Faith, Owes Church $2.8M In Additional Coverage

    NEW ORLEANS — A jury before a Louisiana federal judge on Feb. 5 held that an insurer acted in bad faith in its handling of the church insured’s claim arising from Hurricane Ida property damage, concluding that the insurer owes the insured $2,818,230.66 in additional coverage for its claim, $371,265 for the insurer’s bad faith and $371,265 for the insurer’s failure to timely pay.

  • February 06, 2026

    Owner Of Storm-Damaged Texas Buildings Files Complaint Alleging Insurer Underpaid

    DALLAS — The owner of Texas commercial buildings that were damaged during a 2024 winter storm sued its commercial property insurer in a state court alleging breach of contract and violations of the Texas Deceptive Trade Practices Act (DTPA) for “significantly” underpaying its damages claim “based on the insufficient inspection with the intention of minimizing its liability.”

  • February 05, 2026

    5th Circuit Affirms Another Denial Of Insurers’ Bid To Arbitrate Hurricane Claims

    NEW ORLEANS — In the latest of multiple rulings in which the Fifth Circuit U.S. Court of Appeals has reversed course from its prior precedent and proceeded to bar arbitration of Louisiana hurricane insurance disputes following new Louisiana Supreme Court precedent, a panel on Feb. 4 issued a per curiam unpublished opinion affirming the vacatur of a previous order compelling arbitration of insurance and bad faith claims arising out of hurricane damage to a hotel.

  • February 05, 2026

    Insured Granted Summary Judgment On Interpretation Of Policy’s ‘But For’ Term

    DALLAS — On remand from the Fifth Circuit U.S. Court of Appeals, a Texas federal judge partially granted a motion for summary judgment filed by Southwest Airlines Co. in a dispute over excess coverage for income losses sustained by the airline as a result of a computer system failure in 2016, agreeing with a magistrate judge’s conclusion that the term “but for” as used in the excess policy’s definition of loss must be interpreted as meaning “except for.”