Bad Faith Blog

Summary: In Davis, the Texas Court of Appeals affirmed that no breach occurred when the insurer denied a claim that the jury ultimately found did not exceed the insured’s deductible. Without a breach, no “extra-contractual claims” could exist, including for bad faith.

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.

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.