Bad Faith Blog

Summary: After an evening of under-age drinking, Jacob Patton drove his father’s minivan while his friend, John Donaldson, rode in the passenger seat. When Jacob saw the sirens from a police car, he panicked and attempted to flee. After a short chase, Jacob lost control of the van and crashed into a tree. Donaldson was seriously injured and was hospitalized for almost a month. A blood analysis revealed Jacob had a blood alcohol content of .20.

Summary: In Davis, the Texas Court of Appeals affirmed that no breach occurred when the insurer denied a claim that the jury ultimately found did not exceed the insured’s deductible. Without a breach, no “extra-contractual claims” could exist, including for bad faith.

Summary: State Farm issued an uninsured motorist policy to Enrique with a $100,000 limit. Enrique was injured in an auto accident, sought UM benefits and also sought to recover bad faith damages. The bad faith portion of the case was stayed pending resolution of the UM claim which resulted in a jury verdict awarding $260,000. However, the trial court granted summary judgment in favor of State Farm on the bad faith claim which a divided Delaware Supreme Court affirmed.

On September 9, 2014, the Missouri Supreme Court unanimously struck down the State’s punitive damage cap in Lewellen v. Franklin, 2014 WL 4425202 (Mo. banc Sept. 9, 2014).