Mealey's Insurance Bad Faith
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May 03, 2024
Insureds’ Bad Faith Suit Dismissed For Failure To File Compliant Civil Remedy Notice
FORT LAUDERDALE, Fla. — A Florida federal judge adopted a magistrate judge’s recommendation and granted an insurer’s motion to dismiss its insureds’ bad faith suit, agreeing with the magistrate judge that the suit could not proceed based on the insureds’ failure to file a compliant civil remedy notice (CRN) as required under Florida law before filing the bad faith suit against the insurer.
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May 02, 2024
Disability Insurer, Claimant Settle Dispute Over Policy’s Monthly Benefit Rider
SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals entered an order staying a disability claimant’s appeal and directing the parties to file a joint status report following the disability insurer’s filing of a notice of a settlement between the parties.
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May 01, 2024
10th Circuit: Insurer’s Coverage Denial For Steel Collapse Not In Bad Faith
DENVER — A 10th Circuit U.S. Court of Appeals panel on April 30 affirmed a Wyoming federal judge’s finding that a building owner insured is owed no coverage under an insurance policy’s additional abrupt collapse coverage, finding that the building owner did not show that the insurer or its claims service manager acted in bad faith.
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May 01, 2024
Bad Faith Claim Related To A Portion Of Insurer’s Conduct Will Proceed
MIAMI — An automobile insurer is not entitled to summary judgment on a bad faith claim pertaining to its conduct prior to a tort suit being filed against its insureds because sufficient evidence could support a finding that the insurer acted in bad faith in failing to promptly settle a claim related to a motorcycle accident for which its insured was liable, a Florida federal judge said.
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April 30, 2024
Policy Limit Paid For Hurricane Damage; Breach Of Contract, Bad Faith Claims Fail
NEW ORLEANS — A Louisiana federal judge on April 29 granted a homeowners insurer’s motion to dismiss breach of contract and bad faith claims brought by an insured whose home was damaged during Hurricane Ida because the insurer paid the policy limits owed to the insured and the insured failed to include any facts in support of the claims.
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April 30, 2024
Jury Finds Insurer Violated Unfair Claim Settlement Practices Act In Irma Suit
MIAMI — A Florida federal jury held that a homeowners insurer did not act in bad faith but that it did violate Florida’s Unfair Claim Settlement Practices Act in a coverage dispute over property damage to a 28,000-square-foot ocean-front home caused by Hurricane Irma.
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April 30, 2024
Insured’s Driver Did Not Meet Policy’s Driver Requirement, Indiana Panel Says
INDIANAPOLIS — A trial court properly granted an insurer’s motion for summary judgment on breach of contract and bad faith claims because the driver of the insured tractor-trailer did not meet the policy’s driver-qualification requirement, the Indiana Appeals Court said in affirming the trial court’s ruling.
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April 30, 2024
Insurer, Insured Reach Settlement In Water Damage Coverage Suit
SAN FRANCISCO — An insurer filed a notice of settlement in California federal court after reaching a settlement with its insured in a suit seeking coverage for water damages to the insured’s business.
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April 26, 2024
Insured Files Notice Of Cross-Appeal To 7th Circuit In Environmental Coverage Suit
SOUTH BEND, Ind. — An insured that was awarded more than $115 million by an Indiana federal jury on breach of contract and bad faith claims in a coverage suit stemming from the insured’s request for coverage costs related to the cleanup of polychlorinated biphenyls (PCBs) filed a notice of cross-appeal to the Seventh Circuit U.S. Court of Appeals.
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April 25, 2024
Life Insurer Did Not Breach Contract, Act In Bad Faith, Panel Majority Says
NEW ORLEANS — A life insurer did not breach its contract or act in bad faith by discontinuing automatic payment withdrawals for a life insurance premium after the premium increased because the insured did not provide consent for the automatic withdrawals to continue after the premium increased as required by the contract, the majority of the Fifth Circuit U.S. Court of Appeals said April 24 in affirming a district court’s ruling.
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April 25, 2024
Bid For Ruling As To Coverage Exclusions Is Disputed In Suit Over Water Damage
PHOENIX — In a reply brief challenging arguments by an insurer and reinsurer that the ruling it seeks would be advisory, the insured tells an Arizona federal court that what it is really requesting is a proper “partial summary adjudication . . . on two issues of law that are critical in this insurance coverage and bad faith action” over water damage.
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April 23, 2024
Immediate Appeal Of Breach Of Contract Ruling Is Not Warranted, Judge Says
SEATTLE — A Washington federal on April 22 judge denied an auto insurer’s motion to certify a breach of contract claim ruling to allow the auto insurer to appeal the judge’s summary judgment ruling in favor of the insured on the breach of contract claim because the auto insurer failed to show that an immediate appeal would advance the litigation.
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April 23, 2024
Bad Faith Claim Against Auto Insurer Fails To Allege Sufficient Facts, Judge Says
PHILADELPHIA — A Pennsylvania federal judge on April 22 dismissed an insured’s bad faith claim without prejudice after determining that the insured failed to allege sufficient facts in support of his contention that his auto insurer acted unreasonably or unfairly in handling his claim for underinsured motorist (UIM) benefits.
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April 23, 2024
Skiing Accident Coverage Dispute Transferred To District Of Arizona
SEATTLE — A Washington federal judge transferred a breach of contract and bad faith suit filed by the assignee of an insured to Arizona federal court after determining that Arizona is the more proper venue because the skiing accident occurred in Arizona and the witnesses to the accident and the assignee’s medical providers are located in Arizona.
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April 19, 2024
Auto Insurers Failed To Comply With Colorado Law, Panel Says In Reversing Judgment
DENVER — The Colorado Court of Appeals on April 18 reversed a trial court’s ruling in favor of two auto insurers in a dispute over an insured’s claims for underinsured motorist (UIM) benefits after determining that the insurers’ failure to comply with the requirements of a Colorado law prevents the insurers from asserting that the insured breached his duty to cooperate under the policies.
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April 18, 2024
N.J. Panel Affirms Order Granting Judgment For Progressive In Auto Claim Row
TRENTON, N.J. — A New Jersey appellate court on April 17 affirmed a lower court order granting summary judgment to Progressive Insurance Co. in its insured’s breach of contract and bad faith suit after Progressive denied the insured’s auto accident claim for alleged misrepresentation in the policy application, finding “no reason to second-guess” the lower court’s finding that the insured “lacked standing to pursue a claim for the payoff of her lease.”
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April 18, 2024
No Additional Coverage Owed For Water Damages Caused By Sewer, Drain Backup
MEMPHIS, Tenn. — An insured is not entitled to additional coverage for water damage incurred at its property because the policy at issue provides only $5,000 in coverage for water damage caused by sewer or drain backups, a Tennessee federal judge said in granting the insurer’s motion for summary judgment on claims for breach of contract, bad faith, misrepresentation and negligent actions.
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April 18, 2024
Commercial Property Insurer’s Removal Notice Was Timely Filed, Federal Judge Says
DALLAS — A commercial property insurer’s notice of removal of a breach of contract and bad faith suit was timely filed because the insurer filed the notice of removal within 30 days of learning that complete diversity of citizenship among the parties existed, a Texas federal judge said in denying the insured’s motion to remand the suit to state court.
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April 18, 2024
Breach Of Contract, Bad Faith Claims To Proceed Against Landlord Insurer
OKLAHOMA CITY — Breach of contract and bad faith claims filed against an insurer can proceed because the insureds, who are seeking coverage for damage to the roof of their rental property, identify and describe specific actions to support of the claims, an Oklahoma federal judge said in denying the insurer’s motion to dismiss.
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April 18, 2024
Trial Court Properly Entered Judgment For Insurers In Water Damage Coverage Suit
HARTFORD, Conn. — A trial court properly granted summary judgment in favor of insurers on breach of contract and extracontractual claims in a dispute over coverage for water damage in their home because no issues of fact exist regarding which insurer issued the homeowners policy at issue in the dispute, a panel of the Connecticut Appellate Court said in affirming the trial court’s ruling.
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April 18, 2024
Chapter 11 Liquidation Plan Becomes Effective In Vesttoo Bankruptcy Cases
WILMINGTON, Del. — In a notice outlining several bar dates, the Official Committee of Unsecured Creditors told a Delaware federal bankruptcy court that a Chapter 11 plan of liquidation for Vesttoo Ltd. and its dozens of affiliates went into effect after conditions precedent were “satisfied or waived.”
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April 17, 2024
Insureds Sue Excess D&O Insurers For Bad Faith, Seek Coverage For Receiver’s Claims
CLEVELAND — The former chief executive officer and the general counsel of Dream Center Education Holdings LLC sued their excess directors and officers liability insurers for breach of contract and bad faith in an Ohio federal court, alleging that the insurers’ denials of coverage for a receiver’s underlying lawsuit “are both baseless and unreasonable.”
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April 16, 2024
Parties In Mold, Construction Defects Suit File Supplemental Authorities In 11th Circuit
ATLANTA — An insurer and insureds involved in a dispute over coverage for mold damage discovered in an insured hotel filed supplemental authorities on April 15 in the 11th Circuit U.S. Court of Appeals, citing cases that each side claims are relevant to the issue of whether the policy at issue provides coverage for losses caused by a construction defect even if the cost to fix the defect is not covered.
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April 15, 2024
Freddie Mac, Lead Insurer In D&O Coverage Dispute Finalize Settlement
WASHINGTON, D.C. — Federal Home Loan Mortgage Corp. (Freddie Mac) notified a District of Columbia federal court that it has reached a settlement with the lead insurer in its breach of contract and bad faith lawsuit seeking directors and officers liability coverage for underlying expenses it incurred on behalf of its directors, officers and employees who were subpoenaed by the Securities and Exchange Commission during an investigation and subsequent lawsuit.
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April 11, 2024
Motion To Remand Third-Party Bad Faith Suit Against Auto Insurer Denied
PHOENIX — An Arizona federal judge denied a motion to remand a third-party bad faith suit filed against an auto insurer because the auto insurer met its burden of showing that the federal amount in controversy requirement of $75,000 has been met.