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Mealey's Insurance Bad Faith

  • January 21, 2026

    Auto Insurer’s Motion To Dismiss Bad Faith Claim Fails, Federal Judge Says

    NEW ORLEANS — A bad faith claim alleged against an auto insurer can proceed because the allegations in the complaint sufficiently support a claim for bad faith and show that the insurer possessed a satisfactory proof of loss, a Louisiana federal judge said in denying the insurer’s motion to dismiss.

  • January 21, 2026

    Judge Dismisses Counterclaims Against Insurers In Sexual Abuse Coverage Dispute

    NEW YORK — A federal judge in New York granted insurers’ motion to dismiss an insured’s counterclaims for declaratory relief, reimbursement and violations of the duty of good faith and fair dealing and New York General Business Law Section 349, holding that the majority of the counterclaims are duplicative of the breach of contract claim.

  • January 20, 2026

    Request For Exemplary Damages In Water Damage Suit Dismissed Without Prejudice

    DENVER — A Colorado federal judge dismissed without prejudice an insured’s request for exemplary damages in a water damage coverage dispute, agreeing with a magistrate judge’s finding that the insured failed to show that a triable issue of fact exists that would entitle her to exemplary damages.

  • January 20, 2026

    Washington Federal Judge Denies Insurer’s Dismissal Bid In Bad Faith Suit

    SPOKANE, Wash. — A Washington federal judge denied an insurer’s motion to dismiss a policyholder’s complaint over an underinsured motorist coverage dispute arising from a 2023 auto accident, holding that the policyholder plausibly alleges breach of contract, bad faith and statutory violations and provides sufficient notice of the claims and underlying factual circumstances to proceed.

  • January 20, 2026

    Professional Services Exclusion Does Not Apply As Bar To Coverage, Judge Says

    HAMMOND, Ind. — A professional services exclusion does not apply as a bar to coverage for an underlying suit filed against an insured crane inspection company because the inspection by the company does not qualify as a professional service as the company’s inspectors did not have extensive training and operated more like technicians, an Indiana federal judge said in denying the insurer’s motion for partial summary judgment and granting the insured’s motion for partial summary judgment.

  • January 20, 2026

    Insured Says Property Insurer Acted In Bad Faith By Relying On Pollution Exclusion

    DENVER — A property insurer breached its contract and acted in bad faith by relying on its policy’s pollution exclusion to deny a portion of an insured’s claim for damages caused by the release of asbestos during a fire in a nearby condominium unit, an insured maintains in a lawsuit filed in Colorado federal court.

  • January 20, 2026

    Workers’ Comp Insurer Did Not Act With Sinister Motive, State Judge Says

    HARTFORD, Conn. — A bad faith claim alleged against a workers’ compensation insurer cannot proceed because the insurer met its burden of showing that it did not act with a sinister motive or handle the insured’s claim in an unreasonable manner, a Connecticut judge said in granting summary judgment in favor of the insurer.

  • January 20, 2026

    Fact Disputes Preclude Dismissal, Summary Judgment In Bad Faith Denial Dispute

    BALTIMORE — A Maryland federal judge denied an insurer’s bid to dismiss or obtain summary judgment in a pro se policyholder’s suit arising from a 2022 auto accident, holding that disputed issues remain as to whether the insurer’s handling of a personal injury protection (PIP) claim excused the policyholder’s failure to meet a 12-month presentment requirement and whether administrative remedies were exhausted before the complaint was filed.

  • January 20, 2026

    Title Insurer Did Not Act Unreasonably; Bad Faith Claim Fails, Judge Says

    SEATTLE — A Washington federal judge entered summary judgment in favor of a title insurer after determining that the insured failed to show that the insurer acted unreasonably in investigating the insured’s claim for coverage of an underlying lawsuit arising out of an easement dispute.

  • January 16, 2026

    Residual Disability Benefits Case Is Dismissed Under ‘Combined Period’ Provision

    NEW YORK — Dismissing a dentist’s suit alleging breach of contract and breach of the implied covenant of good faith and fair dealing, a New York federal judge agreed with the insurer defendants that the policy terms permitted termination of residual disability benefits at the dentist’s 65th birthday and did not promise lifetime benefits.

  • January 16, 2026

    Insured Failed To Show Businessowners Insurer Acted Unreasonably, Judge Says

    LOS ANGELES — An insured’s failure to show that an insurer’s investigation of a wind damage claim was incomplete or unreasonable warrants summary judgment in favor of the property insurer on the insured’s bad faith claim, a California federal judge said in partially granting the insurer’s motion for summary judgment.

  • January 15, 2026

    Insured Failed To Show Auto Insurer Acted In Bad Faith, Federal Judge Says

    OKLAHOMA CITY — An Oklahoma federal judge denied an insured’s motion for partial summary judgment after determining that the insured is not entitled to attorney fees or filing costs related to a breach of contract claim because there is no evidence that the auto insurer acted in bad faith and no evidence that the insured’s decision to file suit prompted the insurer to pay the claim.

  • January 15, 2026

    Insureds Allege FAIR Plan Mishandled, Underpaid Wildfire Smoke Claims

    LOS ANGELES — A pair of property insurance policyholders sued the California FAIR Plan Association in state court, alleging that the association breached statutory coverage requirements and engaged in bad faith claims handling by relying on policy provisions that impermissibly restricted coverage for wildfire smoke contamination and loss-of-use claims stemming from the January 2025 Los Angeles wildfires.

  • January 15, 2026

    RICO Defendants Say MGA, Reinsurer, Sought Leave To Amend Complaint In Bad Faith

    BROOKLYN, N.Y. — The defendants in a Racketeer Influenced and Corrupt Organizations Act (RICO) lawsuit filed a letter in a New York federal court urging denial of a reinsurer and a management general agency’s oral request to amend their first amended complaint (FAC) and dismissal of the case with prejudice, arguing that incurable RICO standing defects would remain and that the proposed amendment was sought in bad faith after plaintiffs advanced contradictory arguments.

  • January 14, 2026

    Reinsurers, Insurers Ask To Seal Summary Judgment Briefs In Indemnification Case

    TRENTON, N.J. —  The parties in a dispute between insurers and reinsurers over indemnification for asbestos bodily injury claims moved to seal confidential information as part of their cross-motions for summary judgment in a New Jersey federal court, stating that the filings contain nonpublic, competitively sensitive business information and that disclosure would cause competitive harm.

  • January 14, 2026

    Dismissal Warranted By Insureds’ Repeated Failures To Comply With Discovery Orders

    NEW ORLEANS — A federal judge in Louisiana held that insureds’ repeated failures to comply with the court’s discovery orders warrant dismissal with prejudice of their bad faith lawsuit seeking coverage for their property damage that was caused by Hurricane Ida.

  • January 14, 2026

    Trial Court Abused Discretion In Denying Motion To Bifurcate, Panel Says

    BEAUMONT, Texas — A Texas appellate court conditionally granted a petition for a writ of mandamus after determining that a trial court abused its discretion in denying an insurer and its adjuster’s motion to bifurcate a breach of contract claim from extracontractual claims to avoid prejudice to the insurer and adjuster and to preserve judicial resources.

  • January 13, 2026

    Risk Pool Rebuts Reinsurer’s Dissolution Claim In Arbitration Dispute

    NEW YORK — An intergovernmental risk pool told a New York federal court that a reinsurer baselessly alleged that it was dissolved without notice when the reinsurer urged the court to rule on pending cross-petitions in an arbitration awards dispute involving attorney fees and whether there was a probability or a possibility of an excess judgment in an underlying case.

  • January 12, 2026

    Delaware Judge: 2 Insurers Owe D&O Coverage For Breach Of Fiduciary Duty Suit

    WILMINGTON, Del.— A Delaware judge held that because there is a meaningful link between an underlying demand and a subsequent breach of fiduciary duty lawsuit against an insured’s board of directors, two insurers have a duty to provide directors and officers liability coverage for the underlying action.

  • January 12, 2026

    High Court Denies Review Of Jurisdiction Ruling In PFAS Exposure Suit

    WASHINGTON, D.C. — The U.S. Supreme Court on Jan. 12 denied review of an insured’s petition for a writ of certiorari seeking review of the Sixth Circuit U.S. Court of Appeals’ finding that a district court erred in remanding a declaratory judgment claim and retaining jurisdiction over breach of contract and bad faith claims in a dispute over coverage for underlying per- and polyfluoroalkyl substances (PFAS) exposure suits.

  • January 09, 2026

    Judge: Bifurcation, Stay Of Discovery Unwarranted In Windstorm Coverage Suit

    CHARLESTON, W. Va. — A federal judge in West Virginia denied an insurer’s motion to bifurcate an insured’s bad faith claim from the breach of contract claim in a windstorm coverage dispute, holding that the factors in Light v. Allstate Ins. Co. do not support bifurcation and that a stay of discovery of the bad faith claims is unwarranted.

  • January 08, 2026

    California FAIR Plan Sued Over Alleged Unlawful Wildfire Smoke Claim Denials

    LOS ANGELES — A pair of property insurance policyholders sued the California FAIR Plan Association in state court alleging that the state’s “insurer of last resort”engaged in bad faith insurance practices and breach of contract by relying on unlawful policy provisions to deny or underpay wildfire smoke contamination and loss-of-use claims arising from the January 2025 Los Angeles wildfires, in violation of California insurance law.

  • January 06, 2026

    Homeowner Brings Breach Of Contract, Bad Faith Claims In Underpayment Dispute

    LOS ANGELES — A homeowner alleges in a California state court that a property insurer breached its insurance contract and acted in bad faith by refusing to fully pay for covered wind, rain and water damage to his residence, instead issuing only partial payments totaling about $3,250 on a claim seeking nearly $97,000 in repair and mitigation costs.

  • January 06, 2026

    Insured Urges High Court To Review Jurisdiction Ruling In PFAS Exposure Suit

    WASHINGTON, D.C. — An insured urges the U.S. Supreme Court to grant its petition for a writ of certiorari seeking review of the Sixth Circuit U.S. Court of Appeals’ finding that a district court erred in remanding a declaratory judgment claim and retaining jurisdiction over breach of contract and bad faith claims in a dispute over coverage for underlying per- and polyfluoroalkyl substances (PFAS) exposure suits, noting in its reply brief that the case presents an “ideal opportunity” to resolve a split among the circuits regarding when a district court is required to exercise discretion over mixed claims.

  • January 05, 2026

    Insured Failed To Show Homeowners Insurer Owes Additional Coverage, Judge Says

    FORT WORTH, Texas — A Texas federal judge granted summary judgment in favor of a homeowners insurer after determining that the insured’s contractual and extracontractual claims cannot proceed because the insured failed to show that the homeowners insurer is liable for additional damages caused by a fire at the insured’s home.