Bad Faith Blog

Summary: The Netherlands Insurance Company provided insurance coverage to three corporate entities for which David Edens was the Chief Executive Officer. David and Rhonda Edens were the parents of Zachery who was a motorcyclist killed when an oncoming car turned into his path. The Oklahoma U.S. District Court found there was no UIM/UM coverage, found there could be no bad faith claim prosecuted in the absence of coverage, and entered summary judgment in favor of The Netherlands Insurance Company. The 10th Circuit affirmed on appeal.

Summary: Gary Coker was injured in a car accident after a vehicle driven by Donald Woodall crossed the center line and hit Coker head-on. Coker was driving a vehicle owned by his employer, Ansco & Associates. After filing suit against Woodall, Coker obtained a $5.5 million consent judgment. However, Woodall’s automotive insurance policy provided limits of only $25,000. Under Georgia law, which controlled in this case, Woodall qualified as an underinsured motorist due to his low policy limits.

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.