Missouri Supreme Court Reverses $5.2M Judgment Entered Before Insurer Permitted to Intervene
Suit sought recovery for STD infection contracted in insured’s auto.
We cover current issues, highlights and best practices exclusively on claims of bad faith and extra contractual damages.
Suit sought recovery for STD infection contracted in insured’s auto.
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.
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: State Farm rejected an injured car driver’s $35,000 offer to settle against State Farm’s insured who admitted negligence. The trial resulted in a judgment for nearly $225,000, well above the $100,000 per person limit. The Delaware trial court dismissed the resulting bad faith claim on statute of limitations grounds, relying on an earlier unpublished superior court opinion. In a case of first impression, the Supreme Court of Delaware abrogated the unpublished decision and held that the bad faith action accrued when the excess judgment against the insured became final and unappealable.
Summary: A serious injury construction accident resulted in the general contractor seeking indemnity from its subcontractor, Stresscon. When Travelers did not settle the general contractor’s claim, Stresscon settled and then sued Travelers for bad faith. The Colorado trial court entered judgment on the bad faith jury verdict against Travelers, the Court of Appeals affirmed, but the Supreme Court of Colorado reversed and vacated the judgment.