Newsletter RSS

Mealey's Insurance Bad Faith

  • January 30, 2026

    6th Circuit Grants Rehearing En Banc In Class Action Suit Against Auto Insurer

    CINCINNATI — The Sixth Circuit U.S. Court of Appeals on Jan. 29 granted a petition for rehearing en banc and vacated a panel majority’s opinion that found that an insured met the necessary requirements to certify a class and had standing to bring a class action suit that alleges that an auto insurer breached its contract and acted in bad faith in determining a vehicle’s total loss value.

  • January 30, 2026

    Property Insurer’s Denial Of Coverage For Roof Damage Was Not Bad Faith, Judge Says

    JOHNSTOWN, Pa. — An insured’s bad faith claim against a commercial property insurer cannot proceed because the insurer’s denial of coverage for roof damage was not unreasonable, a federal circuit judge, sitting by designation in Pennsylvania federal court, said after determining that a question of fact exists over the cause of the roof damage.

  • January 29, 2026

    Questions Of Fact Exist As To Whether Auto Insurer Acted In Good Faith, Judge Says

    TAMPA, Fla. — A Florida federal judge denied an auto insurer’s motion for summary judgment after determining that questions of fact exist regarding whether the insurer acted in good faith throughout the entire claims process and whether the insurer caused an excess judgment to be entered against its insureds in a suit stemming from an auto accident.

  • January 29, 2026

    Punitive Damages Not Recoverable In Utah Insurance Dispute, Federal Judge Says

    SALT LAKE CITY — A Utah federal judge granted an auto insurer’s motion for partial judgment on the pleadings, agreeing with the insurer that the insureds’ punitive damages claim cannot proceed because the insureds’ breach of contract and bad faith claims sound in contract and punitive damages are not recoverable for contract claims under Utah law.

  • January 27, 2026

    Bad Faith Allegation Against Auto Insurer Fails To State Claim, Federal Judge Says

    SCRANTON, Pa. — A Pennsylvania federal judge dismissed an insured’s bad faith claim without prejudice after determining that the insured failed to allege sufficient allegations in support of a claim for bad faith under Pennsylvania law.

  • January 27, 2026

    Breach Of Contract, Bad Faith Claims Survive In Storm Damage Suit

    CHARLESTON, W.Va. — An insured’s claims for breach of contract and bad faith can proceed because the insured filed suit within the applicable 10-year statute of limitations, a West Virginia federal judge said in partially denying the insurer’s motion to dismiss.

  • January 26, 2026

    Auto Insurer’s Coverage Denial Was Not Unreasonable, 3rd Circuit Panel Affirms

    PHILADELPHIA — A district court properly entered summary judgment in favor of an auto insurer because the insurer met its burden of showing that the addition of a named driver exclusion was valid and enforceable under Pennsylvania law and the insured failed to show that the auto insurer’s denial of coverage based on the exclusion was unreasonable, the Third Circuit U.S. Court of Appeals said Jan. 23.

  • January 23, 2026

    Additional Insured Owed Coverage For Suits Over Gas Explosion, 7th Circuit Affirms

    CHICAGO — The Seventh Circuit U.S. Court of Appeals on Jan. 22 affirmed a lower federal court’s summary judgment ruling in a dispute over coverage for an additional insured for underlying lawsuits arising out of a gas explosion, holding that the primary insured’s “acts or omissions” caused the gas explosion in whole or in part and the plaintiff is an “additional insured” for the purposes of the umbrella insurance policy.

  • January 23, 2026

    Judge Dismisses Case After Settlement Reached in Microtunneling Defense Dispute

    SEATTLE — A federal judge in Washington granted a subcontractor and its insurer’s stipulation and proposed order of dismissal after the parties had notified the court that they had reached a settlement in a case brought by the subcontractor alleging that the insurer failed to defend it against a counterclaim in an underlying suit arising out of the subcontractor’s microtunneling work for a water project in Seattle.

  • January 23, 2026

    Hurricane Coverage Suit To Proceed; Property Insurer’s Motion To Dismiss Denied

    VALDOSTA, Ga. — An insured’s breach of contract and bad faith claims alleged against a property insurer in a dispute over coverage owed for damages from Hurricane Helene can proceed because the insured’s complaint includes sufficient details to support the claims, a Georgia federal judge said in denying the insurer’s motion to dismiss.

  • January 23, 2026

    Coverage Denial For Mold Suits Was Bad Faith, Insureds Allege In Complaint

    PHILADELPHIA — Pollution liability and commercial general liability insurers of the owner and operator of military housing projects throughout the country acted in bad faith by denying coverage for underlying suits filed against the insureds by families who were injured by mold exposure in insured military housing units, the insureds say in a complaint filed in Pennsylvania federal court.

  • January 22, 2026

    Tort Of Bad Faith In Contract Disputes Not Recognized Under D.C. Law, Judge Says

    WASHINGTON, D.C. — A bad faith claim alleged against a homeowners insurer for refusing to replace all of the wiring in an insured home damaged by an electrical fire cannot proceed because the District of Columbia does not recognize the tort of bad faith in disputes over insurance contracts, a Washington federal judge said in partially granting the insurer’s motion to dismiss.

  • 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.