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Bad Faith Blog

We cover current issues, highlights and best practices exclusively on claims of bad faith and extra contractual damages.

Bad Faith Blog
April 18, 2018

Kentucky Federal Court Bifurcates Coverage Claims from Claims of Bad Faith

Dippin’ Dots wanted coverage for spoliation of its ice cream that resulted from a power outage. Travelers denied coverage and Dippin’ Dots sued Travelers for both the $750,000 value of the spoiled ice cream and for bad faith based on Travelers’ handling of this property damage claim. Dippin’ Dots, LLC v. Travelers Property Casualty Co. of America Travelers moved to bifurcate the trial of the liability and first party bad faith counts, and the Court granted Travelers’ request finding that judicial economy would be advanced by the bifurcation.