Bad Faith Blog

Summary: After an evening of under-age drinking, Jacob Patton drove his father’s minivan while his friend, John Donaldson, rode in the passenger seat. When Jacob saw the sirens from a police car, he panicked and attempted to flee. After a short chase, Jacob lost control of the van and crashed into a tree. Donaldson was seriously injured and was hospitalized for almost a month. A blood analysis revealed Jacob had a blood alcohol content of .20.

Summary: Intentional obstruction of workers’ compensation is a statutory remedy in Minnesota that provides relief for an unfounded refusal to pay benefits or a substantial delay in payment that is designed to induce settlement. Zurich made a number of questionable decisions in its handling of a claim and a jury question was created.

Summary: After plaintiff homeowners discovered significant water damage to their home, they filed a claim with their homeowner insurer, defendant Chubb, which denied the claim on the basis that it was excluded under the policy. Homeowners filed suit against Chubb in Minnesota state court. Chubb removed the case to the US District Court. After the court denied Chubb’s Motion for Summary Judgment, plaintiffs moved to amend the complaint to assert a bad faith claim under a Minnesota statute that allows such claims. The court considered the merits of the proposed bad faith claim on the basis that an amendment may be denied when it would not withstand a motion to dismiss.