Bad Faith Blog

Summary: Kent Roose was severely injured in an auto crash in 2007. The liability carrier for the negligent driver and the driver’s estate paid sums to settle the case Roose filed, but his extensive medical expenses were insufficient to pay his more than $300,000 in medical expenses. His group health plan had an exclusion providing that medical benefits would not be paid when any other liability insurance was available to pay medical costs which the Supreme Court of Montana ruled violated Montana’s “made whole law.” Roose pursued declaratory and injunctive relief on a class action basis, but individually “requested a trial seeking actual and punitive damages for bad faith.” The trial court certified the declaratory judgment and injunctive relief claims and separately granted him a jury trial on the bad faith issues. These rulings were affirmed on appeal.

Summary: Seventh Circuit de-certifies class of homeowner insureds seeking the injunctive relief of a uniform standard for inspecting roof damage cause by massive hailstorm. Also, The Seventh Circuit also agrees with District Court’s decision not to certify class for bad faith claims due to individualized nature of evidence to prove claim.