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Mealey's Insurance Bad Faith

  • November 10, 2025

    Broker Claims Ex-Employee Disclosed Captive Insurance Trade Secrets To New Firm

    PHOENIX — An insurance brokerage firm filed a verified amended complaint in an Arizona federal court alleging that a former employee misappropriated trade secrets and breached a contract by transferring captive insurance client information to his new employer in violation of an agreement barring disclosure of confidential data and solicitation of former clients.

  • November 10, 2025

    S.D. High Court Affirms Auto Coverage Dispute Ruling Involving Social Media Search

    PIERRE, S.D. — The South Dakota Supreme Court affirmed a lower court ruling denying judgment as a matter of law (JMOL) to an auto insurer and granting an insured’s request for attorney fees in a dispute over underinsured motorist benefits (UIM) after a jury returned a verdict in favor of the insured, finding that the lower court did not err in denying JMOL because a jury could have found that the insurer did not act reasonably in denying the UIM claim in part because the claim review did not go beyond examining documents supplied by the insured and a review of his social media accounts.

  • November 10, 2025

    Putative Damages Dismissed Against Subcontractor’s Insurer; Other Claims Proceed

    SANTA ANA, Calif. — A federal judge in California found a construction company did not sufficiently plead punitive damages in its third amended complaint (TAC) against its subcontractor’s insurer for damages the company alleges were caused by using the subcontractor’s drawings for the project, but allowed the construction company’s other claims against the insurer to proceed.

  • November 07, 2025

    Bad Faith Verdict Against Auto Insurer Was Supported By Evidence, Panel Says

    ATLANTA — A district court did not err in denying an auto insurer’s posttrial motion on a bad faith verdict entered against the auto insurer because the evidence at trial was sufficient to support the jury’s finding that the insurer acted in bad faith in handling a claim asserted against the insureds, the 11th Circuit U.S. Court of Appeals said.

  • November 07, 2025

    Insured Appeals $348,000 Award In Asbestos Indemnity Coverage Case

    NEW ORLEANS — An insurance company filed a notice indicating that it would appeal a decision finding it liable for the defense of an asbestos suit in a case in which a federal judge in Louisiana awarded $348,000 for breach of contract but finding that its arguments were not frivolous.

  • November 06, 2025

    Judge: Insured’s Failure To Toll Statute Of Limitations Is Fatal To Claims

    CHICAGO — A federal judge in Illinois granted an insurer’s motion for summary judgment in its insured’s breach of contract and bad faith lawsuit arising from hail and wind damage to the roofs of its 27-building condominium complex, holding that the insured’s failure to toll the statute of limitations is fatal to its claims.

  • November 05, 2025

    Insured’s Appeal In Flood Damage Dispute Dismissed For Want Of Prosecution

    LAKE CHARLES, La. — The Fifth Circuit U.S. Court of Appeals dismissed an insured’s appeal of a Louisiana federal court’s ruling that her claims for flood damage caused by Hurricane Delta and a separate flood event are time-barred under a Standard Flood Insurance Policy (SFIP) and must be dismissed with prejudice, noting that the insured failed to timely pay the fee on appeal.

  • November 04, 2025

    N.J. Panel Affirms Judgment For Insurer In Fire Coverage Dispute With Homeowners

    TRENTON, N.J. — A New Jersey appellate court affirmed a lower court’s ruling granting summary judgment to an insurer in homeowners’ breach of contract and bad faith suit over the insurer’s purported failure to cover fire damage, ruling that the lower court did not err in finding that policy rescission was appropriate because the homeowners did not comply with the policy provision requiring that they “customarily occupy” the insured premises.

  • November 04, 2025

    Judge Awards Insured $348,000 In Asbestos Indemnity Coverage Case

    NEW ORLEANS — A federal judge in Louisiana, declining to reconsider his decision holding an insurer liable for defense costs in an asbestos case, said he would award $348,000 for breach of contract but rejected arguments that the insurer’s conduct constituted bad faith or misrepresentations about the policy.

  • November 03, 2025

    Bifurcation, Discovery Stay Affirmed In Bad Faith Insurance Coverage Dispute

    HARTFORD, Conn. — A Connecticut appeals court affirmed a trial court’s judgment in an insurance coverage dispute arising from an automobile collision, holding that the lower court properly exercised its discretion in bifurcating the proceedings and staying discovery and correctly entered judgment against the policyholder after finding no evidence of unfair settlement practices or bad faith on the insurer’s part and determining that the claimant failed to provide an adequate record for appellate review.

  • November 03, 2025

    Pa. Superior Court Vacates $1.7M Award, Upholds Bad Faith Finding Against Insurer

    HARRISBURG, Pa. — The Pennsylvania Superior Court affirmed a trial court’s ruling that an auto insurer acted in bad faith in withholding a portion of an arbitration award but vacated the trial court’s $1.7 million award entered in favor of the insureds because the trial court improperly calculated the awards of attorney fees and interest.

  • October 31, 2025

    Some Claims Survive Dismissal In Suit Over Disability Policy ‘Age 65’ Language

    PHOENIX — Bad faith, breach of contract and reformation claims survived a dismissal bid in a putative class case over whether certain individual long-term disability (LTD) benefits must be paid through eligible insureds’ 65th birthdays, and an Arizona federal judge allowed limited leave to amend as to claims he dismissed in the Oct. 30 order.

  • October 31, 2025

    Bad Faith Claims In Storm Damage Suit Cannot Proceed Against Insurer, Judge Says

    SAN ANTONIO — An insured’s bad faith claims, alleged under the Texas Insurance Code and Texas Deceptive Trade Practices Act (DTPA), cannot proceed because the insured failed to show that the homeowners insurer’s coverage decision or conduct in handling the insured’s storm damage claim were unreasonable, a Texas federal judge said.

  • October 31, 2025

    Third-Party Bad Faith Claim Fails, West Virginia Federal Judge Says

    BLUEFIELD, W.Va. — A third-party claimant cannot allege a claim for bad faith against the insurer of a West Virginia police department because third-party bad faith claims are not recognized under West Virginia law, a West Virginia federal judge said in adopting a magistrate judge’s recommendation to grant the insurer’s motion to dismiss.

  • October 30, 2025

    Bad Faith Claim Against Church Insurer Cannot Proceed, Judge Says

    SAN ANTONIO — An insured church’s bad faith claim alleged against its insurer cannot proceed because the insurer’s conduct in handling the insured’s storm damage claim does not rise to the level of bad faith, a Texas federal judge said in partially granting and partially denying the insurer’s motion for summary judgment.

  • October 29, 2025

    Insurer Says Bad Faith Complaint Is Mooted By Arbitration Award Payout

    LITTLE ROCK, Ark. — An insurer claims in an Arkansas federal court that a crop insurance lawsuit filed by two farmers should be dismissed as moot, asserting it already paid the arbitration award the farmers seek to confirm and that any additional claims are barred by the arbitration proceeding; in their complaint, the farmers accuse the insurer of bad faith and breach of contract in connection with the denial of coverage for their weather-related crop losses.

  • October 27, 2025

    Bad Faith Claim, Punitive Damages Request Cannot Proceed Against Property Insurer

    COLUMBUS, Ohio — An insured’s bad faith claim against a commercial property insurer cannot proceed because the evidence shows that the insurer quickly adjusted the claim and cooperated with the insured by creating supplemental estimates of damage caused by a fire to the insured building, an Ohio federal judge said in granting the insurer’s motion for summary judgment.

  • October 24, 2025

    Panel Affirms Ruling In Insurer’s Favor In Bad Faith Suit Prompted By Winter Storm

    NEW ORLEANS — Noting that it is bound by Mirelez v. State Farm Lloyds, the Fifth Circuit U.S. Court of Appeals affirmed a lower federal court’s summary judgment ruling in favor of an insurer in Texas insureds’ bad faith lawsuit arising from property damage that was caused by pipes that burst following a winter storm.

  • October 24, 2025

    Auto Insurer Did Not Breach Duty Of Good Faith In Filing Interpleader Action

    INDIANAPOLIS — An auto insurer did not breach its duty of good faith and fair dealing or act in bad faith in filing an interpleader action to determine how its policy limits should be distributed to multiple claimants who were involved in an auto accident with an insured because the interpleader action balanced the interests of all involved parties against the constraint of the available policy limit, an Indiana Supreme Court majority said in affirming a trial court’s grant of summary judgment in favor of the auto insurer.

  • October 24, 2025

    Homeowners Insurer’s Conduct Did Not Rise To Level Of Bad Faith, Federal Judge Says

    LITTLE ROCK, Ark. — An Arkansas federal judge granted a homeowners insurer’s motion to dismiss an insured’s bad faith claim after determining that the insured failed to allege that the insurer’s conduct in handling a claim for tornado damage rose to the level of bad faith.

  • October 24, 2025

    Auto Insurer Did Not Act In Bad Faith In Failing To Settle Claim, Judge Says

    TAMPA, Fla. — An auto insurer did not act in bad faith in failing to settle a claim on behalf of its insured who caused an auto accident because the insurer conducted a reasonable investigation and made reasonable settlement offers to those who were injured in the accident, a Florida federal judge said in granting the insurer’s motion for summary judgment.

  • October 23, 2025

    Homeowners Argue District Court Erred In Finding Insurer Didn’t Act In Bad Faith

    SAN FRANCISCO — In their opening brief filed in the Ninth Circuit U.S. Court of Appeals, several homeowners, as assignees of a developer, argue that the Ninth Circuit should reverse a federal judge in Washington’s dismissal of their case alleging that a general liability insurer breached its duty to defend and indemnify the developer for claims arising from the developer’s defective construction of the homeowners’ houses; they specifically argue that the lower court erred in ruling that the insurer did not act in bad faith.

  • October 23, 2025

    Judge Denies Subcontractor’s, Insurer’s Summary Judgment Motions Over Defense

    SEATTLE — A federal judge in Washington denied a subcontractor’s and its insurer’s motions for summary judgment of the subcontractor’s complaint 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, finding disputes of fact material to the claims.

  • October 23, 2025

    Construction Company Sues Insurer For Denying Coverage Based On Wrong Exclusion

    LOS ANGELES — A construction company sued its insurer and insurance broker in California state court, arguing that the insurer breached its contract by not defending it in an underlying complaint against the company alleging construction defects in the building of five houses; the company argues that the insurer wrongly denied coverage based on a condominium construction exception.

  • October 22, 2025

    Federal Judge Dismisses Hurricane Ida Coverage Suit After Parties Reach Settlement

    NEW YORK — After an insured and its insurer indicated that they reached a settlement in principle, a federal judge in New York dismissed without prejudice the insured’s declaratory judgment, breach of contract and bad faith lawsuit seeking coverage for property damage to its Louisiana restaurant and warehouse that was caused by Hurricane Ida.