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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
October 2, 2016

Range of Valuations Support Bad Faith Summary Judgment for Insurer

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.

Bad Faith Blog
September 18, 2016

Montana UTPA Claim Properly Dismissed

Summary: Ibsen, Inc., the owner and operator of an urgent care medical clinic filed a four count complaint against a health insurance company, Caring For Montanans, and others, alleging violations of Montana’s Unfair Trade Practices Act (UTPA) and alleged common law counts for breach of fiduciary duty, breach of contract, and unjust enrichment. The Montana District Court held that all four counts were essentially for alleged violations of the UTPA and found that Montana did not allow a private right of action for such violations. Accordingly, it dismissed the individual and class action claims Ibsen sought to pursue. A unanimous Montana Supreme Court affirmed.

Bad Faith Blog
September 11, 2016

Delaware Bad Faith Claims Accrue When Excess Judgment Becomes Final and Unappealable

Summary: State Farm rejected an injured car driver’s $35,000 offer to settle against State Farm’s insured who admitted negligence. The trial resulted in a judgment for nearly $225,000, well above the $100,000 per person limit. The Delaware trial court dismissed the resulting bad faith claim on statute of limitations grounds, relying on an earlier unpublished superior court opinion. In a case of first impression, the Supreme Court of Delaware abrogated the unpublished decision and held that the bad faith action accrued when the excess judgment against the insured became final and unappealable.

Bad Faith Blog
September 6, 2016

Colorado Supreme Court Vacates Bad Faith Verdict

Summary: A serious injury construction accident resulted in the general contractor seeking indemnity from its subcontractor, Stresscon. When Travelers did not settle the general contractor’s claim, Stresscon settled and then sued Travelers for bad faith. The Colorado trial court entered judgment on the bad faith jury verdict against Travelers, the Court of Appeals affirmed, but the Supreme Court of Colorado reversed and vacated the judgment.