Subscribe: LexisNexis® Mealey's™ Insurance Bad Faith Legal News
http://feeds.feedburner.com/InsuranceBadFaithLegalNews
Added By: Feedage Forager Feedage Grade B rated
Language: English
Tags:
bad faith  bad  breach contract  claim  dist lexis  faith  federal judge  federal  insurance  insured  insurer  judge  lexis 
Rate this Feed
Rate this feedRate this feedRate this feedRate this feedRate this feed
Rate this feed 1 starRate this feed 2 starRate this feed 3 starRate this feed 4 starRate this feed 5 star

Comments (0)

Feed Details and Statistics Feed Statistics
Preview: LexisNexis® Mealey's™ Insurance Bad Faith Legal News

LexisNexis® Mealey's™ Insurance Bad Faith Legal News



Headline Insurance Bad Faith Legal News from LexisNexis®



 



Subrogation Of Claims Violated State Law, Judge In Bad Faith Suit Rules
MISSOULA, Mont. - An insurer violated provisions of Montana state law by subrogating its insureds' property damages claims without properly investigating whether the insureds had unrecovered losses, a federal judge in Montana ruled Dec. 28 in denying the insurer's motion to dismiss (Seth Konecky, et al. v. Allstate Fire & Casualty Insurance Co., et al., No. 17-10, D. Mont., 2017 U.S. Dist. LEXIS 212636).



Abatement Of Bad Faith Claims More Appropriate, Federal Judge Rules
TAMPA, Fla. - A federal judge in Florida on Dec. 22 denied motions to dismiss filed by insurers in an insurance bad faith lawsuit, ruling that abatement of the bad faith claims against the insurers is a more appropriate decision than dismissal (Mark Yencarelli v. USAA Casualty Insurance Co., et al., No. 17-2029, M.D. Fla., 2017 U.S. Dist. LEXIS 210873).



Panel Affirms Summary Judgment Ruling In Favor Of Insurer In Bad Faith Suit
RICHMOND, Va. - Ruling that it has found no reversible error, a Fourth Circuit U.S. Court of Appeals panel on Dec. 22 affirmed a federal court's order granting summary judgment in favor of an insurer in an insurance breach of contract and bad faith lawsuit (Dominant Investments 113 LLC v. United States Liability Insurance Co., No. 17-1517, 4th Cir., 2017 U.S. App. LEXIS 26394).



Claims In Bad Faith Suit Found To Be Preempted By Federal Law
SAN FRANCISCO - Insureds' claims in an insurance breach of contract and bad faith lawsuit over coverage under a homeowners insurance and a standard flood insurance policy (SFIP) are preempted by federal law, a federal judge in California ruled Jan. 10 in granting the insurer's motion to dismiss (Alicia Martin, et al. v. CSAA Insurance Exchange, No. 17-4066, N.D. Calif., 2018 U.S. Dist. LEXIS 4675).



3rd Circuit Panel Affirms Summary Judgment Ruling In Bad Faith Lawsuit
PHILADELPHIA - A federal district court did not err in granting summary judgment in favor of an insurer in an insurance breach of contract and bad faith lawsuit because the insurer paid full coverage limits for mold remediation under the terms of a homeowners insurance policy and, thus, could not have acted in bad faith, a Third Circuit U.S. Court of Appeals panel ruled Jan. 10 in affirming (Mary Ann Andrews, et al. v. Merchants Mutual Insurance Co., No. 17-1413, 3rd Cir., 2018 U.S. App. LEXIS 637).



Federal Judge Allows Common-Law Bad Faith Claim To Proceed
CHARLESTON, W.Va. - A West Virginia federal judge on Dec. 28 dismissed an insured's breach of contract claim, but refused to dismiss a portion of the insured's bad faith claim on the basis that common-law bad faith damages are premised on a delay in settlement and not on a formal denial of coverage (Linda Blevins v. Nationwide General Insurance Co., No. 17-3692, S.D. W.Va., 2017 U.S. Dist. LEXIS 212386).



Federal Judge Adopts Recommendation Denying Dismissal Of Bad Faith Claim
PORTLAND, Ore. - An Oregon federal judge on Jan. 8 adopted a magistrate judge's recommendation that an insurer's motion to dismiss the insureds' claim alleging bad faith and unfair dealing be denied, agreeing with the magistrate judge's determination that the insurer breached its extracontractual duty of care in its handling of the insureds' claim for water damages (Craig Barnard et al., v. State Farm Fire & Casualty Co., No. 17-1340, D. Ore., 2017 U.S. Dist. LEXIS 214701).



Judge Finds Fact Issues Exist On Whether Foundation Damage Was Covered By Policy
NEW HAVEN, Conn.- A Connecticut federal judge on Dec. 29 refused to grant summary judgment on a breach of contract claim asserted by insureds, finding that genuine issues of fact exist on when damage to a property's foundation occurred, but the judge found no evidence to support their claims for violation of Connecticut law or to show that the insurer acted in bad faith (Raymond G. Gabriel v. Liberty Mutual Fire Insurance Co., No. No. 3:14-cv-01435, D. Conn., 2017 U.S. Dist. LEXIS 213202).



Bad Faith Claim Dismissed; Federal Judge Says Date Of Demand Is Not Clear
MEMPHIS, Tenn. - A Tennessee federal judge on Dec. 28 adopted a magistrate judge's recommendation that an insured's bad faith claim should be dismissed, agreeing with the magistrate judge that it is not clear from the complaint whether the insureds waited the required 60 days after filing a formal demand upon the insurer before filing suit (Anthony Shelby, et al. v. Northfield Insurance Co., No. 17-2418, W.D. Tenn., 2017 U.S. Dist. LEXIS 212332).



New Trial Ordered On Bad Faith Claim; Post-Litigation Conduct Is Relevant
DES MOINES, Iowa - The Iowa Court of Appeals on Dec. 20 reversed a jury verdict entered in favor of an insurer on an insured's bad faith claim and remanded the insured's suit for a new trial after determining that the trial court erred in excluding evidence of the insurer's post-litigation conduct (B&F Jacobson Lumber & Hardware LLP v. Acuity, No. 16-1134, Iowa App., 2017 Iowa App. LEXIS 1256).



Federal Judge Dismisses Bad Faith, Contract Breach Claims In Life Insurance Suit
TRENTON, N.J. - A New Jersey federal judge on Dec. 28 dismissed state law claims for breach of contract and bad faith in a dispute over survivorship benefits under a life insurance policy after determining that the state law claims are preempted by the Employee Retirement Income Security Act (Jody Rizzo v. First Reliance Standard Life Insurance Co., et al., No. 17-745, D. N.J., 2017 U.S. Dist. LEXIS 212484).



5th Circuit Says Genuine Dispute Exists As To Cause Of Disability
NEW ORLEANS - After finding that a disability claimant raised a genuine dispute of material fact as to the cause of his disability, the Fifth Circuit U.S. Court of Appeals on Dec. 29 reversed a district court's ruling against the claimant on a breach of contract claim (David M. Cox v. Provident Life and Accident Insurance Company, No. 16-60831, 5th Cir., 2017 U.S. App. LEXIS 27036).



Damage-To-Property Policy Exclusion Applies To Bar Coverage, 7th Circuit Says
CHICAGO - The Seventh Circuit U.S. Court of Appeals on Dec. 18 found that because an insurance policy's damage-to-property exclusion barred excess coverage for a property damage claim arising from an April 27, 2010, grain elevator explosion, the insurer had no duty to act in good faith in responding to an offer to settle the claim (West Side Salvage, Inc. v. RSUI Indemnity Co., No. 16-3928, 7th Cir., 2017 U.S. App. LEXIS 25533).



Insurer Says No Coverage Due In Yahoo Email Scanning Suits
SAN JOSE, Calif. - A commercial general liability (CGL) insurer on Jan. 4 moved for summary judgment in California federal court in a coverage dispute with Yahoo! Inc., arguing that its duty to indemnify was never triggered in underlying privacy lawsuits over the internet firm's former email-scanning practices because no damages award was levied against Yahoo (Yahoo! Inc. v. National Union Fire Insurance Company of Pittsburgh, Pa., No. 5:17-cv-00489, N.D. Calif.).



Exclusion's 'Derivative Claim Exception' Does Not Apply, 9th Circuit Affirms
SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on Dec. 27 affirmed a lower federal court's finding that the "derivative claim exception" to an insurance policy's "insured vs. insured" exclusion does not apply, finding that there is no coverage for an underlying lawsuit that an insured's CEO breached his fiduciary obligations (Sunrise Specialty Co. Inc., et al. v. Scottsdale Insurance Co., No. 16-16856, 9th Cir., 2017 U.S. App. LEXIS 26860).



Judge Dismisses Reinsurer, Related Entities From Breach Of Contract Case
SALT LAKE CITY - A Utah federal judge on Dec. 19 dismissed a reinsurer and other related entities from a breach of contract and bad faith lawsuit over denied coverage under a professional liability policy because there is no personal jurisdiction (Allegis Investment Services LLC, et al. v. Arthur Gallagher & Co., et al., No. 17-515, D. Utah, 2017 U.S. Dist. LEXIS 209257).



Judge: Insured Failed To Show Insurer Improperly Denied Claim In Bad Faith Suit
FORT WORTH, Texas - An insured has failed to show that her insurer failed to conduct a reasonable investigation into her coverage claim or denied her claim in a reasonable period of time, a federal judge in Texas ruled Dec. 6 in substantially granting the insurer's motion for summary judgment in an insurance breach of contract and bad faith lawsuit (Leona G. Carswell v. State Farm Lloyds, No. 17-149, N.D. Texas, 2017 U.S. Dist. LEXIS 200535).



Insurer's Conduct During Appraisal Is Relevant To Insured's Bad Faith Claims
DENVER - A Colorado federal judge on Dec. 12 refused to dismiss an insured's statutory and common-law bad faith claims after determining that the insurer's conduct before, during and after an appraisal proceeding conducted to determine the value of the insured's claim for property damages caused by a hailstorm is relevant to the insured's allegations of bad faith conduct (Hometown Community Association Inc. v. Philadelphia Indemnity Insurance Co., No. 17-777, D. Col., 2017 U.S. Dist. LEXIS 203675).



3rd Circuit Affirms Ruling In Favor Of Insurer In Superstorm Sandy Dispute
PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Nov. 17 affirmed a district court's summary judgment ruling in favor of an insurer in a Superstorm Sandy coverage dispute after determining that the insurer fulfilled the requirements of accord and satisfaction when it sent its insureds a check representing payment for the insureds' losses (Anna Cranmer, et al. v. Harleysville Insurance Co., et al., No. 17-1596, 3rd Cir., 2017 U.S. App. LEXIS 23187).



Motion To Compel Denied, Claims Bifurcated In Property Damage Coverage Dispute
ALBANY, Ga. - A Georgia federal judge on Dec. 5 denied an insured's motion to compel the production of an insurer's claims file, determining that bifurcation of the insured's breach of contract claim from the insured's bad faith claim is appropriate as bifurcation protects the insurer's rights under the work-product doctrine for the breach of contract claim and acknowledges that the insured may need access to the requested claims file to prove its bad faith claim (Central Baptist Church of Albany Georgia Inc. v. Church Mutual Insurance Co., No. 16-231, M.D. Ga., 2017 U.S. Dist. LEXIS 199782).



11th Circuit Says District Court Did Not Err In Finding Bad Faith Claim Fails
ATLANTA - The 11th Circuit U.S. Court of Appeals on Nov. 30 affirmed a district court's judgment in favor of an insurer on a bad faith claim after determining that the district court did not err in concluding that no reasonable jury could find that the insurer acted in bad faith by failing to settle a claim against the insured (Shirley Kwiatkowski v. Allstate Insurance Co., No. 17-11068, 11th Cir., 2017 U.S. App. LEXIS 24190).



Genuine Issues Of Fact Regarding Settlement Of Auto Claim Exist, Judge Says
COLUMBUS, Ga. - Genuine issues of fact preclude summary judgment on a bad faith failure-to-settle claim because a jury could find that the insurer did not act reasonably in responding to a settlement offer for the full limits of an auto policy, a Georgia federal judge said Dec. 12 in denying the insurer's and a trustee's motions for summary judgment (Fife M. Whiteside v. GEICO Indemnity Co., No. 16-313, M.D. Ga., 2017 U.S. Dist. LEXIS 203617).



Judge: Insured Alleged Sufficient Facts To Support Bad Faith Claim Against Insurer
OKLAHOMA CITY - An Oklahoma federal judge on Dec. 12 denied an insurer's motion to dismiss an insured's claims for bad faith and breach of contract arising out of the handling of two auto claims after determining that the insured alleged sufficient facts in support of the claims and properly relied on Oklahoma's Unfair Claims Settlement Practices Act to support her claim for bad faith (Rachel Curtis, et al. v. Progressive Northern Insurance Co., No. 17-1076, W.D. Okla., 2017 U.S. Dist. LEXIS 203759).



Insured Can't Show That Remand Is Necessary In Bad Faith Suit, Judge Rules
PITTSBURGH - An insured has failed to show that remand of his insurance breach of contract and bad faith lawsuit to state court is necessary since he asserts only claims under state law and, thus, a federal district court lacks jurisdiction over the claims because the insured does not seek a declaratory judgment and because he seeks damages in excess of the statutory limits, a federal magistrate judge in Pennsylvania ruled Dec. 12 in denying the insured's motion (Adam Carney v. GEICO, No. 17-1486, W.D. Pa., 2017 U.S. Dist. LEXIS 205042).



With Expert Opinions Allowed, Insurer Denied Judgment On Home Damage Claims
NASHVILLE, Tenn. - A Tennessee federal judge on Dec. 4 denied summary judgment to an insurer in a lawsuit over coverage for a damaged home after finding that testimony by the homeowners' expert is admissible and raises a material factual dispute about whether a sinkhole caused the damage (Debra Daniels, et al. v. Erie Insurance Group, No. 3:16-cv-01977, M.D. Tenn., 2017 U.S. Dist. LEXIS 198906).



Connecticut Federal Judge: Cracks In Foundation Are Not Sudden And Accidental Loss
BRIDGEPORT, Conn. - No coverage is owed to insureds seeking coverage for cracks discovered in their basement walls and caused by the presence of a mineral used in the concrete because the insureds' loss was not sudden and accidental as required under the policy, a Connecticut federal judge said Nov. 30 (Alan D. Lees, et al. v. Allstate Insurance Co., No. 15-1050, D. Conn., 2017 U.S. Dist. LEXIS 196728).



Judge Finds No Facts To Support Claim That Insurer Wrongfully Terminated Policies
LOS ANGELES - A California federal judge on Dec. 4 dismissed insureds' claims for violation of California's unfair competition law (UCL) and breach of contract, finding that they failed to show that an insurer's termination of their life insurance policies was unreasonable (Arthur Avazian, et al. v. Genworth Life & Annuity Insurance Co., et al., No. 2:17-cv-06459, C.D. Calif., 2017 U.S. Dist. LEXIS 199067).



Pennsylvania Judge Vacates No Coverage Ruling In Dispute Over Racetrack Death
PHILADELPHIA - A Pennsylvania judge found that a lower court erred in finding that a commercial umbrella liability insurer has no duty to indemnify its insured against $2.6 million in punitive damages that it paid to settle an underlying wrongful death and survival action, vacating and remanding for an entry of summary judgment in favor of the insured on the breach of contract claim and for reinstatement and further proceedings on the bad faith claim (Bensalem Racing Association, Inc., et al. v. Ace Property and Casualty Insurance Co., No. 530 EDA 2017, Pa. Super.).



Federal Judge: Insurer Didn't Breach Contract When It Denied Nursing Home Benefits
SEATTLE - Finding that a long-term-care insurance policy unambiguously defines the requirements of receiving nursing home benefits versus assisted living facility benefits, a Washington federal judge on Nov. 30 affirmed a lower court's finding that the insurer did not breach the contract when it denied a request for nursing home benefits (Mike Howisey, et al. v. Transamerica Life Insurance Co., No. 17-00009, W.D. Wash., 2017 U.S. Dist. LEXIS 197220).



Idaho Supreme Court Affirms Summary Judgment Ruling In Bad Faith Suit
BOISE, Idaho - In a split opinion, a majority of justices on the Idaho Supreme Court on Nov. 29 ruled that a state trial court did not err in granting an insurer's motion for summary judgment in an insurance bad faith lawsuit arising out of a claim for underinsured motorist (UIM) benefits because an insured failed to provide the necessary facts to support the "fairly debatable element" of her claim (Peggy Cedillo v. Farmers Insurance Co. of Idaho, No. 43890 2017, Idaho Sup., 2017 Ida. LEXIS 314).



11th Circuit Panel Affirms Summary Judgment Ruling In Bad Faith Suit
ATLANTA - A federal district court did not err in granting an insurer's motion for summary judgment in an insurance bad faith lawsuit because an insured failed to provide sufficient evidence that would allow a reasonable jury to determine that the insurer acted in bad faith in its investigation into a wrongful death claim, the 11th Circuit U.S. Court of Appeals ruled Nov. 29 (Gregory C. Welford v. Liberty Insurance Corp., No. 16-14054, 11th Cir., 2017 U.S. App. LEXIS 24081).



Judge: Insureds Failed To Sufficiently Plead Bad Faith Claim Against Insurer
PHILADELPHIA - Insureds in an insurance breach of contract and bad faith lawsuit against their automobile insurance provider have failed to plead the necessary facts to support their claim that their insurer acted in bad faith in the handling of the underinsured motorist (UIM) claim, a federal judge in Pennsylvania ruled Nov. 17 in granting the insurer's motion to dismiss (Edward Sherman, et al. v. State Farm Insurance Co., No. 17-4822, E.D. Pa., 2017 U.S. Dist. LEXIS 190363).



Insurer's Motion For Bifurcation In Bad Faith Suit Substantially Denied
ALBUQUERQUE, N.M. - A federal judge in New Mexico on Nov. 20 substantially denied an insurer's motion to bifurcate trial on an insured's noncontractual claims in an insurance breach of contract and bad faith lawsuit, ruling that bifurcation of the contractual claims from the noncontractual claims will be granted at trial by the judge as needed, even though all claims will be tried "before the same jury" (Claudell Hodges v. GEICO Insurance, No. 17-0960, D. N.M., 2017 U.S. Dist. LEXIS 191479).



Bad Faith Claim Cannot Be Adjudicated Until After Contract Claim Is Resolved
FORT MYERS, Fla. - A bad faith claim stemming from an auto insurance dispute must be dismissed because the claim cannot be adjudicated until after the breach of contract claim is resolved, a Florida federal judge said Nov. 27 in granting the insurer's motion to dismiss (James Robert Wadsworth, et al. v. State Farm Mutual Automobile Insurance Co., No. 17-502, M.D. Fla., 2017 U.S. Dist. LEXIS 194254).



Removal Of Bad Faith Lawsuit Not Permitted Under Statute, Judge Rules
OKLAHOMA CITY - Remand of an insurance breach of contract and bad faith lawsuit is warranted because an insurer failed to show that removal was permitted under the bad faith exception to Federal Rule of Civil Procedure 1446(c)(1), a federal judge in Oklahoma ruled Nov. 17 in remanding the action to state court (Travis B. Holman, et al. v. Coventry Health & Life Insurance Co., et al., No. 17-0886, W.D. Okla., 2017 U.S. Dist. LEXIS 190903).



Disability Income Insurer Must Produce Documents Pertaining To Claims Decision
COLUMBUS, Ohio - Following an in camera review, an Ohio federal magistrate judge on Nov. 27 granted an insured's motion to compel the production of seven documents after determining that the documents will help to determine whether the insurer acted in bad faith in its handling of the insured's disability income claim (Mukesh R. Shah, M.D. v. Metropolitan Life Insurance Co., et al., No. 16-1124, S.D. Ohio, 2017 U.S. Dist. LEXIS 194347).



Illinois Panel Affirms Judgment For Insurer, Dismisses Appeal Of Bad Faith Claim
CHICAGO - The First District Illinois Appellate Court, Sixth Division, on Nov. 17 affirmed a trial court's ruling in favor of an insurer on a breach of contract claim but dismissed the insured's appeal as it pertained to the trial court's ruling on the bad faith claim because the insured failed to cite any legal authority in her brief regarding the bad faith claim (Carolyn Anderson v. Allstate Indemnity Co., No. 1-16-2043, Ill. App., 1st Dist., 6th Div., 2017 Ill. App. Unpub. LEXIS 2357).



No Evidence Offered To Support Breach Of Contract, Bad Faith Claims, Federal Judge Says
SHERMAN, Texas - Because insureds failed to offer evidence supporting their claims for breach of contract and bad faith arising out of an insurer's denial of coverage for a water damage claim, a Texas federal judge on Nov. 29 granted the insurer's motion for summary judgment (Jon and Leslie Young v. Allstate Vehicle and Property Insurance Co., No. 17-87, E.D. Texas, 2017 U.S. Dist. LEXIS 196094).



New Mexico Federal Judge Says Bifurcation Of Bad Faith Counterclaims Is Warranted
ALBUQUERQUE, N.M. - A New Mexico federal judge on Nov. 22 granted an insurer's motion to bifurcate and stay discovery of extracontractual claims because the interests of judicial economy and judicial efficiency favor bifurcation as the bad faith counterclaim alleged against the life insurer is dependent upon the outcome of the insurer's declaratory judgment claim (New York Life Insurance Co. v. Roger Saul, et al., No. 17-621, D. N.M., 2017 U.S. Dist. LEXIS 193210).



Montana Federal Magistrate: Bad Faith Suit Should Be Remanded For Lack Of Diversity
BILLINGS, Mont. - A Montana federal magistrate judge on Nov. 8 recommended that an insured's motion to remand its bad faith suit against its insurer be granted because complete diversity of citizenship is lacking (Hochhalter Inc. v. Diamond State Insurance Co., et al., No. 17-30, D. Mont., 2017 U.S. Dist. LEXIS 195258).