Mealey's Insurance Bad Faith

  • September 22, 2026

    Parties File Stipulation Of Dismissal In Environmental Contamination Suit

    NEW YORK — An insured and its insurer filed a stipulation of voluntary dismissal in an environmental contamination coverage suit after reaching an agreement in the insured’s suit seeking reimbursement of costs related to a pollution incident.

  • September 22, 2026

    Breach Of Contract, Bad Faith Claims Move Forward Against Insurer’s Parent Company

    LOS ANGELES — A California federal judge determined that breach of contract and bad faith claims alleged against the parent company of an insurer can proceed in a wildfire coverage damage suit because the insureds alleged sufficient facts to show that the insurer and its parent company share a unity of interest and ownership.

  • September 22, 2026

    Assignee Appeals Summary Judgment Ruling In Favor Of Insurer In D&O Coverage Suit

    SAN JOSE, Calif. — An assignee notified a California federal court that he is appealing the court’s grant of summary judgment in favor of a business and management liability insurer on his claims for breach of contract, bad faith and punitive damages in a directors and officers liability coverage dispute over an underlying lawsuit alleging breaches of fiduciary duties against the insured’s directors.

  • September 22, 2026

    Judge Limits Testimony From Industry Standards Expert In Coverage Dispute

    DENVER — A Colorado federal judge partially excluded testimony from an insurance industry standards expert retained by insureds in an auto and property coverage dispute, finding that the expert may testify about industry standards but may not offer opinions based only on an insurer’s internal practices or unsupported “best practices.”

  • September 21, 2026

    Texas Federal Judge Excludes Church Experts, Nixes Claims In Storm Coverage Suit

    AMARILLO, Texas — A Texas federal judge dismissed common-law and statutory bad faith, Texas Insurance Code and Texas Deceptive Trade Practices Act (DTPA) claims brought by a church against its insurer in a dispute over coverage for hailstorm damage, leaving only breach of contract and prompt payment claims pending against the insurer, while also excluding two of the church’s experts in an opinion and order addressing several motions filed by both parties.

  • September 21, 2026

    Bad Faith, Insurance Code Violation Claims Fail In Contamination Suit, Judge Says

    SHERMAN, Texas — A Texas federal judge dismissed Texas state law claims brought against insurers in an environmental contamination coverage dispute after determining that New York law applies under the policies’ choice-of-law provision.

  • September 17, 2026

    Extracontractual Claims Cannot Proceed Against Auto, Property Insurers, Judge Says

    DENVER — Statutory and common-law bad faith claims against a property insurer and an auto insurer must be dismissed because no reasonable jury could determine that the insurers unreasonably delayed the adjustment of the insureds’ claim or unreasonably delayed payment of the claims, a Colorado federal judge said in granting the insurers’ joint motion for partial summary judgment.

  • September 17, 2026

    Third-Party Bad Faith Claim Against Auto Insurer Fails, Florida Federal Judge Says

    TAMPA, Fla. — A third-party bad faith claim against an auto insurer cannot proceed because the third parties do not have standing to bring the suit against the insurer based on the lack of an assignment of rights from the insured and the lack of damages sustained by the insured, a Florida federal judge said in granting the insurer’s motion for summary judgment.

  • September 17, 2026

    Insured Failed To Show Auto Insurer Breached Duty To Investigate Claim, Judge Says

    SEATTLE — A Washington federal judge denied an insured’s motion for partial summary judgment in an auto coverage suit after determining that the insured failed to offer evidence showing that the insurer breached its duty to reasonably investigate the insured’s claim for underinsured motorist (UIM) benefits.

  • September 15, 2026

    Panel Partly Affirms, Partly Reverses Ruling For Insurer In Tornado Coverage Suit

    INDIANAPOLIS — An Indiana appeals panel partly affirmed and partly reversed a lower court’s grant of summary judgment in favor of a homeowners insurer in a coverage dispute arising from tornado damage, holding that the insurer failed to satisfy its burden of establishing that its reading of the Dwelling Replacement Cost (DRC) Endorsement is correct as a matter of law or that no question remains as to whether the $16,777.40 actual cash value payment was due and payable under the DRC Endorsement independent of the insureds’ completion of repair or replacement.

  • September 14, 2026

    Parties Jointly Move For Dismissal Of Claims In Hurricane Ida Coverage Row

    NEW ORLEANS — Parties involved in a Hurricane Ida coverage dispute on Sept. 11 filed a joint motion to dismiss in a Louisiana federal court, advising the court that they have resolved the dispute among the Louisiana Insurance Guaranty Association (LIGA), a flood insurer and its insured over the insured’s purported losses from the hurricane.

  • September 14, 2026

    Breach Of Contract, Bad Faith Claims Against Property Insurer Fail, Judge Says

    AUGUSTA, Ga. — An insured’s breach of contract and bad faith claims against a property insurer must be dismissed because the insured failed to cite any policy provisions allegedly breached by the insurer, a Georgia federal judge said in granting the insurer’s motion to dismiss.

  • September 14, 2026

    7th Circuit: Disability Insurance Claimant Was Still Gainfully Employed

    CHICAGO — Affirming summary judgment in favor of a disability insurer, the Seventh Circuit U.S. Court of Appeals ruled that the claimant’s breach of contract and bad faith claims fail because his individual policy unambiguously conditioned benefits on showing “that he could not make a reasonable living from any job for which he was qualified, not just his prior occupation as a dentist.”

  • September 14, 2026

    Insured, Primary Insurers Reach Settlement In Oil Tanker Seizure Suit

    SAN FRANCISCO — A California federal judge granted an unopposed motion to vacate court filings and hearings following the primary insurers’ settlement with their insured in a coverage dispute stemming from the seizure of the insured’s crude oil tanker by Iranian military forces.

  • September 11, 2026

    No Additional Coverage Owed For Soot, Ash Damage, Oregon Federal Judge Says

    EUGENE, Ore. — A homeowners insurer owes no additional coverage for soot and ash damage in an insured home because the insureds failed to meet their burden of showing that the home’s attic and attic insulation were contaminated with soot and ash, an Oregon federal judge said in granting the insurer’s motion for summary judgment in a breach of contract and bad faith suit.

  • September 11, 2026

    Magistrate Judge Dismisses Insured’s Claims With Prejudice In Hurricane Damage Suit

    BATON ROUGE, La. — A Louisiana federal magistrate judge granted summary judgment in favor of a homeowners insurer and dismissed the insured’s breach of contract and bad faith claims because the insured failed to offer any evidence that she sustained damages as a result of the insurer’s handling of her claim.

  • September 11, 2026

    Texas Appeals Panel Upholds Take-Nothing Judgment In Theft Coverage Dispute

    HOUSTON — A Texas appeals panel affirmed a trial court’s take-nothing judgment against a man who sued his insurer for breach of contract, bad faith and deceptive business practices after he was denied coverage for a theft and loss claim arising from an alleged burglary, holding that legally sufficient evidence supported the finding that the property was not stolen and therefore not covered.  The panel further declined to address the trial court’s findings that the insurer proved its affirmative defenses of fraud and reasonable basis.

  • September 10, 2026

    Amending Complaint To Assert Extracontractual Claims Would Be Futile, Judge Says

    GREENVILLE, Miss. — A Mississippi federal judge denied a motion for leave to amend a complaint to assert extracontractual claims against a homeowners insurer after determining that amendment would be futile based on the insureds’ failure to allege sufficient facts in support of the extracontractual claims.

  • September 10, 2026

    Insured’s Claims Against Insurer In Storm Damage Suit Will Proceed, Judge Says

    LOUISVILLE, Ky. — An insured’s breach of contract and extracontractual claims alleged against a homeowners insurer in a coverage dispute over storm damage can proceed because the insured alleges sufficient facts in support of her allegations that the insurer is liable under the insurance contract and that the insurer failed to perform a reasonable inspection of her home, a Kentucky federal judge said in denying the insurer’s motion for judgment on the pleadings.

  • September 10, 2026

    Arbitration Ordered In Dispute Over Improperly Canceled Crop Insurance Policy

    MONTGOMERY, Ala. — An Alabama federal magistrate judge granted a crop insurer’s request to stay litigation and compel arbitration, agreeing with the provider’s contention that a dispute over an erroneously canceled crop insurance policy is subject to mandatory arbitration under the Federal Crop Insurance Act (FCIA).

  • September 09, 2026

    Federal Judge Won’t Enforce Texas IT Firm’s $50K Insurer Theft Loss Settlement

    SHERMAN, Texas — A federal judge denied a Texas IT services company’s request to enforce a $50,000 private agreement with its insurer to settle breach of contract, bad faith and state insurance law claims over a “covered theft loss,” finding that the court likely lacks jurisdiction to enforce the agreement because it “neither adopted nor approved, much less ordered compliance with” it.

  • September 09, 2026

    Insureds’ Bad Faith Claims Fail In Rodent Infestation Damages Suit, Judge Says

    DALLAS — A Texas federal judge granted a homeowners insurer’s motion for summary judgment on common-law and statutory bad faith claims after determining that the claims fail because a legitimate dispute exists over whether coverage was afforded for damages stemming from rodents chewing on water pipes in the insureds’ home.

  • September 08, 2026

    Judge Rules For Durham, N.C., Restaurants As To Liability In COVID-19 Coverage Suit

    DURHAM, N.C. — A federal judge in North Carolina granted summary judgment in favor of four Durham businesses on their claims for declaratory judgment, breach of contract, breach of the implied covenant of good faith and fair dealing and unfair and deceptive trade practices in their lawsuit seeking coverage for their business interruption losses arising from the lockdowns prompted by the COVID-19 pandemic, holding that their mutual commercial property insurer failed to identify any policy provisions, exclusions or factual distinctions that would place the insureds’ claims outside the scope of the North State Deli, LLC, et al. v. The Cincinnati Insurance Company, et al. decision by the North Carolina Supreme Court.

  • September 03, 2026

    Washington Panel Says Auto Insurer Acted Reasonably In Handling UIM Claim

    SPOKANE, Wash. — A panel of the Washington Division III Court of Appeals affirmed a trial court’s summary judgment rulings on breach of contract and extracontractual claims entered in an auto insurer’s favor because the insurer acted reasonably when it told the insureds it could not evaluate their underinsured motorist (UIM) benefits claim until it knew the liability limits of the tortfeasor’s insurance policy.

  • September 03, 2026

    5th Circuit Dismisses Church’s Appeal In Coverage Suit For Want Of Prosecution

    NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on Sept. 2 dismissed a church insured’s appeal of a Texas federal court’s final judgment dismissing with prejudice its claims against its commercial property insurer for breach of contract, bad faith, unfair or deceptive acts or trade practices and violations of the Texas Prompt Payment Claims Act in a coverage dispute over hailstorm damage, finding that the insured failed to timely file its appellant brief and record excerpts.