Bad Faith Blog

Summary: Infinity Assurance Insurance Company insured Ben Purscell’s car when he was involved in a serious auto accident leading to a serious injury and a death. His liability limits were only $25,000/$50,000. Infinity was unable to settle the underlying case which resulted in verdicts exceeding $900,000. Purscell filed a bad faith failure to settle and breach of fiduciary duty case against Infinity. The district court judge entered summary judgment for Infinity which was affirmed on appeal.

Summary: Spencer, a truck driver employed by Annett Holdings, was injured on the job. He filed suit against Annett making several bad faith claims, including failure to pay medical bills, delaying necessary medical care, and delaying healing period benefits. The district court dismissed the action for failing to present a submissible case, which the 8th Circuit affirmed.

Summary: Mark Twain, a cement barge owned by Continental Cement, sank on February 7, 2011. After the insurance companies investigated, they denied coverage for the loss of the hull and the expense of removing the barge from the river. The insurance companies filed a declaratory judgment action seeking a declaration of no coverage which drew a counterclaim for breach of contract and vexatious refusal to pay. The district court agreed with the insurers that Continental Cement had a maritime insurance law duty of utmost good faith. After a jury trial which returned a verdict in favor of the insurance companies, Continental Cement appealed to the 8th Circuit which affirmed the district court judgment.