Bad Faith Blog

Jack and Carolyn Brockway filed suit against Allstate after it denied coverage for losses plaintiffs suffered after a theft at their home. The plaintiffs filed claims immediately following the theft which Allstate denied more than two years later. The plaintiffs sought damages for breach of contract and for breach of the implied covenant of good faith and fair dealing. In response, Allstate moved for summary judgment, arguing that a two year suit limitation provision contained in the insurance contract barred the plaintiffs’ action. The trial court granted the motion for summary judgment which was affirmed on appeal.

Summary: Workmen’s Auto Insurance Company concluded it was not required to pay attorney fees because it made a timely tender before the uninsured motorist action was filed. Furthermore, the $25,000 fee award was contrary to the Oregon fee shifting statute’s policy objectives. The trial and appellate courts disagreed.