Bad Faith Blog

Summary: Worker’s compensation insurer filed dispute as to whether claimant’s compensable injury included right carpal tunnel syndrome, a wrist sprain/strain, and tendonitis. Following a contested case hearing with the Department of Worker’s Compensation, it was found that evidence of causation was insufficient to establish claimant’s injuries were work related. Claimant filed a bad faith action against the worker’s compensation insurer and its claims examiner for denying her claims. After the lower court granted summary judgment in favor of the worker’s compensation insurer, the Court of Appeals affirmed, holding that worker’s compensation insurer’s claims examiner did not act in bad faith by filing a dispute asserting that claimant’s compensable injury did not extend to carpal tunnel syndrome, wrist strain/sprain or tendonitis.

Summary: The District Court granted partial summary judgment in favor of insurer on bad faith claim regarding roof damage. The District Court found there was a bona fide dispute whether coverage applied, but that the insurer had not acted in bad faith by relying on its experts’ reports which concluded that the damage was not caused by Hurricane Ike.