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Mealey's Insurance Bad Faith

  • December 18, 2024

    2 Investors Want To Pursue Resolution With Vesttoo Affiliate In Israel

    WILMINGTON, Del. — Two Israeli investors have asked a Delaware federal bankruptcy court for relief from the injunction in the Chapter 11 liquidation of Vesttoo Ltd. and its dozens of affiliates so they can pursue arbitration and/or liquidation proceedings in Israel.

  • December 16, 2024

    Federal Judge Refuses To Dismiss Bad Faith Suit Arising From Roof Damage

    SIOUX FALLS, S.D. — A federal judge in South Dakota denied a property insurer’s motion to dismiss insureds’ breach of contract, bad faith and declaratory judgment lawsuit prompted by the insurer’s denial of coverage for damage to the insureds’ roof under the policy exclusion due to faulty construction or design, finding that the court is not convinced the insureds’ alleged loss arose out of the weight of water or ice.

  • December 16, 2024

    5th Circuit: No Coverage For Insured’s Loss Due To Surface Water, Faulty Workmanship

    NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals affirmed a lower federal court’s summary judgment ruling in favor of a homeowners insurer in an insured’s breach of contract and bad faith lawsuit arising from a pool deck renovation that caused water damage to the insured’s rental property, finding that the undisputed evidence attributes the insured’s loss to surface water and faulty workmanship, which are excluded from coverage.

  • December 16, 2024

    Florida Federal Judge Says Removal Of Bad Faith Suit Was Untimely

    TAMPA, Fla. — A Florida federal judge remanded an insured’s bad faith suit to state court after determining that an auto insurer’s removal of the suit was untimely because the insurer failed to remove the suit within one year of its commencement and failed to show that the insured acted in bad faith in preventing the removal of the suit.

  • December 16, 2024

    10th Circuit Panel Says Kansas Statute Bars Third-Party Claimant’s Bad Faith Suit

    DENVER — The 10th Circuit U.S. Court of Appeals on Dec. 13 affirmed a district court’s ruling that a third-party claimant lacks standing to bring breach of contract and bad faith claims against an auto insurer, agreeing with the lower court that the claimant’s suit is barred by a Kansas statute that governs claims against a decedent’s estate.

  • December 13, 2024

    Issue Of Fact Exists As To Whether Auto Insurer Acted Unreasonably, Judge Says

    SEATTLE — An insured’s extracontractual claims alleged against an auto insurer can proceed because the insured met her burden of showing that a genuine dispute of material fact exists as to whether the insurer acted unreasonably in handling the insured’s claim for underinsured motorist (UIM) benefits.

  • December 13, 2024

    Suit Against Subcontractors’ Insurers Dismissed; No Breach Of Contract Alleged

    BOSTON — A Massachusetts federal judge dismissed a claimant’s suit against two insurers of subcontractors who are named as defendants in an underlying negligence suit stemming from the death of a construction worker because there was no breach of any contract or any breach of the implied covenant of good faith and fair dealing by the insurers.

  • December 13, 2024

    3rd Circuit Affirms Dismissal Of Coverage Dispute Arising From Construction Accident

    PHILADELPHIA — The Third Circuit U.S. Court of Appeals affirmed a lower federal court’s grant of a commercial general liability insurer’s motion to dismiss a coverage lawsuit arising from a construction accident, agreeing with the lower court that the insurer had no duty to defend a building owner because it was not an “additional insured” under the CGL policy’s additional insured endorsement.

  • December 12, 2024

    Lower Court Properly Found Coverage Is Not Owed For Entire Building, Panel Says

    CINCINNATI — The Sixth Circuit U.S. Court of Appeals on Dec. 11 affirmed a district court’s ruling that coverage is only owed for a portion of a wall that collapsed in a building that was undergoing renovation, agreeing with the lower court’s finding that a partial collapse is not the same as a collapse as defined in the policy issued to a building owner and contractor.

  • December 12, 2024

    Breach Of Contract, Bad Faith Claims Will Remain In Federal Court, Judge Says

    LOS ANGELES — Breach of contract and bad faith claims against a life insurer will proceed in California federal court because remand to state court is not warranted as complete diversity of citizenship exists, a California federal judge said after determining that the beneficiaries’ negligence claim cannot proceed against the nondiverse life insurer agent who was working in the scope of her employment for the life insurer.

  • December 12, 2024

    Washington Federal Judge Refuses To Enter Summary Judgment On Bad Faith Claim

    SEATTLE — An insured condominium association is not entitled to summary judgment on a bad faith claim in a dispute over coverage for hidden water damage, a Washington federal judge said after determining that questions of fact exist on the issue of when the insured discovered the damage.

  • December 11, 2024

    5th Circuit Affirms Ruling In Favor Of Insurer In Dispute Over Hail, Wind Damage

    NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on Dec. 10 affirmed a Texas federal court’s ruling that an insured’s extracontractual claims against a homeowners insurer cannot proceed because no coverage is owed for hail and wind damage to the insured’s roof based on the insured’s failure to satisfy the policy’s residence premises requirement.

  • December 09, 2024

    Majority Renders $4.5M In Attorney Fees To Insureds In Hurricane Katrina Suit

    JACKSON, Miss. — A Mississippi Supreme Court majority affirmed a jury's $10,457,858.89 damages award against an insurer in a Hurricane Katrina coverage dispute and reversed the lower court’s denial of the insured’s estate’s posttrial motion for attorney fees and rendered $4,500,000 in attorney fees to the estate plus postjudgment interest, finding that the court’s decision to force the estate to use nearly half of its award to pay attorney fees fails to adequately compensate them for bringing this bad faith action against the insurer.

  • December 09, 2024

    Alleging Price-Fixing, Doctors Sue MultiPlan, Insurers In Federal Court

    CHICAGO — Alleging that they were paid only about 8% of what they billed for out-of-network services because of “a buyers’ cartel dating back to at least 2015,” medical practices that refer to themselves as doctors sued MultiPlan Corp., Aetna Inc., The Cigna Group, UnitedHealth Group Inc., Elevance Health Inc. and other entities in Illinois federal court, asserting numerous claims including some under the Employee Retirement Income Security Act.

  • December 03, 2024

    Panel Affirms Dismissal Of Amber Heard’s Counterclaims In Defamation Coverage Suit

    PASADENA, Calif. — The Ninth Circuit U.S. Court of Appeal affirmed a lower federal court’s dismissal of Amber Heard’s breach of contract and bad faith counterclaims in the insurer’s declaratory judgment lawsuit alleging that it has no duty to defend or indemnify her for a defamation judgment awarded to Johnny Depp.

  • December 03, 2024

    No Coverage Owed For Bacteria, Mold In Insureds’ Home, Federal Judge Says

    LAKE CHARLES, La. — A homeowners insurer did not breach its contract or act in bad faith in refusing to provide coverage for bacteria, mold and contamination allegedly caused by hurricane damage because the policy clearly excludes coverage for contaminants and pollutants, a Louisiana federal judge said in granting the insurer’s motion for summary judgment.

  • December 02, 2024

    Insured Says Property Insurer Acted In Bad Faith In Handling Water Damage Claim

    SEATTLE — An insured condominium owners association filed suit in Washington federal court, alleging that its property insurer acted in bad faith by failing to investigate and make a coverage decision regarding the association’s claim for hidden water damage discovered in condominium buildings maintained by the association.

  • December 02, 2024

    Breach Of Contract, Bad Faith Claims To Proceed Against Property Insurer

    BILLINGS, Mont. — A Montana federal judge denied an insurer’s motion to dismiss breach of contract and bad faith claims alleged against the insurer after determining that it is not clear if the insurer was a party to a property insurance policy issued to the insured.

  • December 02, 2024

    Status Conference Scheduled In Hurricane Coverage Dispute With Insolvent Insurer

    LAFAYETTE, La. — A Louisiana federal magistrate judge issued an order scheduling a follow-up status conference in a homeowner’s suit against his now-insolvent insurer for its purported failure to cover damages caused by Hurricanes Laura and Delta.

  • December 02, 2024

    Bad Faith Claim To Proceed Against Insurer In Connecticut State Court

    WATERBURY, Conn. — A Connecticut state judge denied an auto insurer’s motion to strike an insured’s bad faith claim and request for punitive damages and attorney fees after determining that the insured’s complaint alleges sufficient factual allegations in support of the bad faith claim.

  • December 02, 2024

    Construction Company Alleges Bad Faith Cross-Claim Against CGL Insurer

    SACRAMENTO, Calif. —A construction company insured answered a commercial general liability insurer’s first amended complaint and filed cross-claims for breach of contract and breach of the implied covenant of good faith and fair dealing and seeks equitable contribution as assignee of an excess insurer that funded its $2,250,000 settlement of an underlying construction defects lawsuit.

  • November 27, 2024

    Insureds Seek Vacatur Of Order Compelling Arbitration Of $7M Hurricane Claim

    NEW ORLEANS — Citing new Louisiana Supreme Court precedent on the arbitrability of insurance claims, two New Orleans property owners filed a motion in Louisiana federal court to vacate an order compelling arbitration of their claims for $7 million in damages caused by Hurricane Ida and for bad faith against a group of foreign and domestic insurers, which was previously upheld by the Fifth Circuit U.S. Court of Appeals.

  • November 26, 2024

    Assignee Entitled To Move For Discovery On Insured’s Cooperation With Auto Insurer

    LAS VEGAS — A Nevada federal judge determined that an insured’s assignee is entitled to move for additional discovery to determine if the insured cooperated with her auto insurer in its investigation of an auto accident because the information would be helpful in the claimant’s attempt to oppose the auto insurer’s motion for summary judgment.

  • November 26, 2024

    Breach Of Contract, Bad Faith Claims Stemming From Hurricane Damage Will Proceed

    BATON ROUGE, La. — A Louisiana federal judge determined that insureds’ breach of contract and bad faith claims against their property insurer  arising out of the insureds’ claim for hurricane damages can proceed because the claims in the insureds’ amended complaint are not unripe.

  • November 26, 2024

    Auto Insurer Did Not Breach Contract, Act In Bad Faith In Handling Vandalism Claim

    WILMINGTON, Del. — An insured’s breach of contract and bad faith claims against an auto insurer cannot proceed because the insured failed to provide evidence that the insurer breached its contract or acted unreasonably in handling his claim for vandalism damages to his auto.