Bad Faith

No Bad Faith, No Consequential Damages! Florida Supreme Court Denies Insured’s Attempt To Recover Extra-Contractual Consequential Damages in a First-Party Property Claim

A recent decision from the Supreme Court of Florida punctuates well-established federal precedent that consequential damages in insurance disputes are not recoverable absent a separate action for bad faith.  In Citizens Property Ins. Corp. v. Manor House LLC, et al, Manor House, owner of rental apartment buildings, filed an action against its property insurer for breach of contract and fraud...Read More

Statute of Limitations and Pollution Exclusion at Play for Toxic Tort Coverage Analysis (PA)

The Western District of Pennsylvania recently determined that a number of insurers did not owe coverage for hundreds of bodily injury claims brought forth in a toxic-tort action. In Allegheny Ludlum,  LLC. v. Liberty Mutual Insurance Company, et al., the District Court granted the defendants’ motions for summary judgment after determining that the plaintiff’s claims were brought too late and...Read More

Despite Error, Insurer Escapes Liability for UM/UIM Coverage

In Beach v. The Navigators Ins. Co., No. 1550 MDA 2019 (Pa. Super. Ct. Sept. 11, 2020), the plaintiffs sought UIM coverage under an automobile insurance policy issued to their employer. The dispute centered on the applicable limits of the UIM policy. The question as to the applicable UIM limit arose out of an error the insurer made when renewing the policy at issue. Beaches’ employer sought to...Read More

EDPA Holds Plaintiff’s Conclusory Allegations of Insurer Bad Faith Insufficient (PA)

In Harris v. Allstate, the plaintiff brought an action against her insurer, alleging the insurer breached the terms of the policy and engaged in bad faith conduct. By way of brief background, it was alleged that Allstate issued a policy to plaintiff. It was further alleged that a covered “peril” occurred, which caused “direct physical damage” to the plaintiff’s property. Plaintiff alleged that...Read More

Court Will Not Seal Record in Malpractice Litigation (PA)

A Pennsylvania trial court recently denied a plaintiff’s attempt to seal the entire record in a breach of contract and bad faith litigation against an insurer and its underwriter.  In Moses Taylor Foundation v. Coverys, a hospital and its self-insurance trust filed a motion to seal its complaint and the entire record in order to preserve the confidentiality of its settlement negotiations and...Read More

New York Contractor Battles For Coverage (NY)

Queens Pioneer Construction Corp. (“Queens Pioneer”) commenced a breach of insurance contract action in the United States District Court for the Eastern District of New York seeking damages and a declaratory judgment associated with insurer Illinois Union’s coverage disclaimer and withdrawal from the defense of a civil suit. The underlying lawsuit was initiated by Juan Algeria Reyes, an...Read More

Residential Property Exclusion Holds Water Following Hurricane (PA)

Recently, in Elite Restoration Inc. v. First Mercury Insurance Company, the Eastern District of Pennsylvania considered whether First Mercury Insurance Company (“FMIC”) was entitled to judgment on the pleadings pursuant to Federal Rule of Civil Procedure 12(c) and a declaration that it was not obligated to defend and indemnify Elite Restoration, Inc. (“Elite”) in respect of an underlying claim...Read More

Home Is Where The Heart Is For UIM Benefits (NY)

In a recent decision by the New York Appellate Division, Second Department, the Court refused to dismiss a lawsuit seeking underinsured motorist benefits for the estate of a deceased pedestrian.  In Jian Liang v Progressive Casualty Insurance Company, the Court stated that there were factual issues, as to whether the pedestrian, who was the insured’s mother, was a “relative”...Read More

Checking it Twice: 2nd Circuit Affirms Dismissal of Doctor’s Suit Against Insurer for Bad Faith Reporting (NY)

Recently, in the lawsuit captioned: Haar v. Nationwide, the Second Circuit affirmed the New York Court of Appeals decision that a doctor is unable to sue an insurer for bad faith reporting under New York Public Health Law § 230(11)(b) because the statute does not create a private right of action. In 2017, Harr sued Nationwide because it submitted a complaint to the New York Department of...Read More

Pennsylvania Supreme Court Weighing Bad Faith (PA)

Back in April, we noted all eyes were on the PA Supreme Court to further clarify the bad faith standard with respect to insurance coverage in the lawsuit captioned: Berg v. Nationwide Mut. Ins. Co., Inc.  On Thursday, November 21, oral arguments were finally held in this matter.  During arguments, the PA Supreme Court was asked to consider whether the PA Superior Court abused its discretion by...Read More