Mealey's Insurance Bad Faith
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November 16, 2023
Insurer Says Dismissal Of Claims In Hurricane Damage Suit Must Be Affirmed
RICHMOND, Va. — The Fourth Circuit U.S. Court of Appeals should affirm a district court’s dismissal of claims alleging breach of contract, bad faith and violation of North Carolina’s Unfair and Deceptive Trade Practices Act (UDTPA) against a homeowners insurer because the district court properly found that the insured’s amended complaint did not allege sufficient facts in support of the insureds’ claims, the insurer contends in its appellee brief.
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November 16, 2023
Bad Faith, Unfair Practices Claims In Hurricane Coverage Suit Are Time-Barred
NEW BERN, N.C. — An insured’s claims for bad faith and for violation of North Carolina’s Unfair and Deceptive Trade Practices Act (UDTPA) arising out of claims for property damages caused by Hurricanes Matthew and Florence cannot proceed because the claims are barred by the applicable statute of limitations, a North Carolina federal judge said in partially granting a commercial property insurer’s motion for judgment on the pleadings.
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November 16, 2023
Judge Grants Request To Amend Complaint To Add Guaranty Association, Issues Remand
NEW ORLEANS — One day after a Louisiana federal judge granted a homeowner’s motion to add the Louisiana Insurance Guaranty Association (LIGA) to his hurricane coverage suit against his now-insolvent insurer, the homeowner added LIGA as a defendant in his amended complaint.
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November 16, 2023
Judge Allows Insured To Add Guaranty Association, Says No ‘Dilatory Purpose’
NEW ORLEANS — A Louisiana federal judge granted a homeowner’s motion to amend his complaint and add the Louisiana Insurance Guaranty Association (LIGA) as a defendant in a hurricane coverage suit against his now-insolvent insurer, finding in part that though LIGA is a nondiverse party, the homeowner had no “dilatory purpose” in amending the complaint.
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November 16, 2023
Judgment Denied For Short-Term Health Insurer In $250K Cancer Treatment Dispute
OKLAHOMA CITY — An Oklahoma federal judge denied summary judgment for a short-term health insurer in its insured’s breach of contract suit for rescinding his policy and failing to cover his colon cancer treatment over alleged material misrepresentations in the policy application, finding that questions remain as to the insured’s agreeing to rescission and the reasonableness of the insurer’s conduct in ensuring that the insured received his policy benefits.
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November 16, 2023
Suit Against Homeowners Insurer Dismissed Following Parties’ Agreement
SAN FRANCISCO — A California federal judge dismissed a fire damage coverage suit filed by insureds against their homeowners insurer after the parties filed a joint stipulation to dismiss the claim for breach of contract without prejudice and the claims for bad faith and unfair insurance practices with prejudice.
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November 16, 2023
Insurer Granted Summary Judgment On Breach Of Contract, Bad Faith Claims
DALLAS — A Texas federal judge granted a homeowners insurer’s motion for summary judgment on an insured’s breach of contract claim and extracontractual claims but stayed a ruling on the motion as it pertained to the insured’s claim for violation of the Texas Prompt Payment of Claims Act (TPPCA) to allow the Texas Supreme Court to answer a certified question posed by the Fifth Circuit U.S. Court of Appeals regarding recovery under the TPPCA.
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November 15, 2023
Insured’s Breach Of Contract, Bad Faith Suit Dismissed For Failure To Prosecute
SAN FRANCISCO — A California federal magistrate judge on Nov. 14 dismissed an insured’s breach of contract and bad faith suit against his homeowners insurer based on the insured’s failure to respond to the insurer’s motion for judgment on the pleadings and the insured’s failure to respond to the court’s order to show cause as to why the suit should not be dismissed for failure to prosecute.
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November 15, 2023
Insureds Permitted To File Amended Complaint To Add Bad Faith Allegations
HAMMOND, Ind. — An Indiana federal judge granted insureds’ motion for leave to file an amended complaint to add allegations related to an auto insurer’s alleged bad faith conduct in the handling of their claim after determining that the insureds refer to supportive facts in their amended complaint.
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November 15, 2023
Judge Denies Dismissal In Hurricane Coverage Suit, Says Substitution Has No Impact
LAKE CHARLES, La. — A Louisiana federal judge denied dismissal of a homeowners’ bad faith suit against their now-insolvent homeowners insurer for purportedly failing to adequately compensate them for damages caused by Hurricane Laura, finding that substituting the Louisiana Insurance Guaranty Association (LIGA) does not impact the court’s subject matter jurisdiction.
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November 14, 2023
No Coverage For Damages To Insured’s Dock Caused By Water, Structural Defects
SPOKANE, Wash. — A Washington federal judge on Nov. 13 granted summary judgment in favor of a homeowners insurer after determining that the insured’s claims for breach of contract and bad faith cannot proceed because the insurer’s denial of coverage for damage to a dock on the insured’s property was reasonable as the damage was caused by water and structural defects, excluded causes of losses, rather than wind.
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November 14, 2023
Conversion Bid Denied, Exclusivity Terminated In Vesttoo Bankruptcy Cases
WILMINGTON, Del. — A Delaware federal bankruptcy judge has denied without prejudice a U.S. trustee’s motion to convert the jointly administered Chapter 11 cases of Vesttoo Ltd. and 48 affiliates to Chapter 7 cases.
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November 13, 2023
Insured Condo Association Says Coverage Owed For Hidden Water Damage
SEATTLE — A property insurer’s denial of coverage for hidden water damage discovered in the buildings of a condominium development constitutes a breach of contract and bad faith because coverage is afforded under the policies at issue, an insured condominium association says in a complaint filed in Washington federal court.
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November 13, 2023
Reserve Information In COVID-19 Coverage Suit Not Relevant To Bad Faith Claim
SANTA ANA, Calif. — A California federal magistrate judge denied an insured’s motion to compel documents related to the reserve set by an insurer in response to the insured’s claim for business losses sustained in the wake of the COVID-19 pandemic after determining that the reserve information is not relevant to the insured’s bad faith claim because only a nominal reserve was set by the insurer and no changes were made to the reserve since the coverage claim was filed.
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November 09, 2023
Insured’s Disability Income Suit Barred By Policy’s Suit Limitations Provision
ATLANTA — A suit against a disability income insurer is barred by the policy’s three-year suit limitations provision because the insured failed to file the breach of contract and bad faith suit within three years of his claim for benefits being denied, the 11th Circuit U.S. Court of Appeals said in affirming a district court’s ruling.
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November 09, 2023
Bad Faith Claim In Disability Suit Cannot Proceed, Judge Says
SAN DIEGO — A bad faith claim alleged against a disability insurer cannot proceed because the insured failed to show that the insurer acted unreasonably and because the insurer showed that a genuine issue of fact existed on the cause of the insured’s disability, a California federal judge said in partly granting the disability insurer’s motion for summary judgment.
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November 08, 2023
Debtors In Vesttoo Bankruptcy Cases Note Agreement With Unsecured Creditors
WILMINGTON, Del. — In a Nov. 7 objection to conversion to Chapter 7, Chapter 11 debtors Vesttoo Ltd. and 48 affiliates tell a Delaware federal bankruptcy court that they hope to close on a sale of assets “around December 1” and “if such a sale is not possible or cannot come together in that time frame . . . will have worked with [the Official Committee of Unsecured Creditors] toward a singular liquidating plan.”
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November 07, 2023
Judgment Granted To Nationwide In Truck Theft Row Over Insured’s Misrepresentation
SCRANTON, Pa. — A Pennsylvania federal judge granted summary judgment to Nationwide in a breach of contract and bad faith suit over Nationwide’s failure to cover an auto insurance claim when its insured’s truck was purportedly stolen and burned, finding that because the insured failed to show that “Nationwide lacked a reasonable basis in denying his claim” due to the insured’s purported material misrepresentations, summary judgment is appropriate.
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November 07, 2023
Discovery Will Start In Crop Insurance Row Despite Regulators’ Stay Bid
GRAND RAPIDS, Mich. — Without explanation, a Michigan federal judge denied a motion to stay discovery as to the U.S. Department of Agriculture (USDA) and the Federal Crop Insurance Corp. (FCIC) until resolution of their dismissal bid in a suit over crop insurance claims that the plaintiffs say have not been adjusted in more than three years.
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November 06, 2023
Insured Municipality Files Suit, Says Coverage Owed For Remediation Costs
TRENTON, N.J. — A premises pollution liability insurer breached its contract and acted in bad faith by denying coverage for environmental contamination remediation costs incurred by an insured municipality because the policy obligates the insurer to provide coverage for the remediation costs, the insured says in a complaint filed in New Jersey state court.
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November 06, 2023
Breach Of Contract, Bad Faith Suit Against Rental Insurer Must Be Remanded
LAS VEGAS — A Nevada federal judge granted a motion to remand filed by insureds in a breach of contract and bad faith suit over coverage owed under a rental dwelling policy after determining that the insurer failed to meet its burden of showing that the federal jurisdictional amount-in-controversy requirement of $75,000 has been met.
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November 06, 2023
No Evidence That Homeowners Insurer’s Investigation Was Unreasonable, Judge Says
HOUSTON — A breach of contract claim against a homeowners insurer can proceed in a dispute over coverage for storm-related damages; however, a claim for violations of the Texas Insurance Code cannot proceed because the insured failed to show that the insurer’s investigation was unreasonable or that the insurer acted in bad faith in handling her claim, a Texas federal judge said in partially granting the insurer’s motion for summary judgment.
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November 03, 2023
Ohio High Court Majority Affirms Choice-Of-Law Analysis For Bad Faith Claim
COLUMBUS, Ohio — An Ohio appellate court applied the correct factors in a choice-of-law analysis for a bad faith claim in an environmental contamination coverage suit because the bad faith claim sounds in tort rather than contract, the majority of the Ohio Supreme Court said in affirming the appellate court’s ruling.
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November 03, 2023
Questions Of Fact Exist On Reasonableness Of Auto Insurer’s Claims Handling
SEATTLE — An insured’s extracontractual claims against an auto insurer can proceed because questions of fact exist as to whether the auto insurer’s handling of the insured’s claim and settlement offer to the insured were reasonable, a Washington federal judge Nov. 2 said in denying the insurer’s motion for partial summary judgment on the extracontractual claims.
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November 03, 2023
Breach Of Contract, Bad Faith Suit Will Remain In Louisiana Federal Court
NEW ORLEANS — An insured’s breach of contract and bad faith suit arising out of a hurricane damage coverage dispute will remain in federal court because the property insurer met its burden of showing that the federal jurisdictional amount in controversy requirement has been exceeded, a Louisiana federal judge said in denying the insured’s motion to remand to state court.