Bad Faith Blog

Summary: May & May Trucking (“May & May”) was insured by Progressive. May & May leased one of its dump trucks to Trent Quinn who took it to New Orleans after Hurricane Katrina where it was stolen. Sometime after the leasing to Quinn the coverage limits were increased by $50,000. After disputes arose, May & May filed suit for breach of contract and vexatious refusal to pay. The circuit court’s summary judgment in favor of Progressive was reversed on appeal.

Summary: It is a question of fact as to whether an insurer who has a duty to investigate is guilty of bad faith when it asks insured to tell it if facts change such that it is exposed. Gordon Trucking operated a vehicle that was involved in a serious accident. Another vehicle crossed the center line hitting the Gordon vehicle and then the injured plaintiff’s vehicle. Gordon Trucking had the following coverages: