Bad Faith Blog

Summary: R & G sued American Family for breach of contract and statutory bad faith penalties after sustaining two separate property damage losses that were both denied under the vacancy exclusion and for R & G’s failure to cooperate in the investigations. On appeal the court found the trial court properly denied the insured’s motions for summary judgment, including on the issue of bad faith penalties.

Summary: Insured brought breach of contract and bad faith claim against commercial property insurer for denial of coverage for the cost of labor to replace fixtures stolen from insured’s vacant rental home and the cost of lost monthly rent after the rental home was burglarized. The trial court entered summary judgment in favor of the insured. The appellate court affirmed in part and reversed in part.