Judge Ashley Royal of the United States District Court for the Middle District of Georgia recently held in a case by an insured against its disability insurer alleging bad faith refusal by the insurer to pay disability benefits, that the plaintiff was entitled to discovery of a wide range of documents potentially bearing on the insurer’s “intent” and the circumstances “surrounding” the insurer’s refusal to pay.
Extra-Contractual Liability
Federal District Court Asks Washington Supreme Court to Clarify Availability of Bad Faith Claims
By Troutman Pepper Locke on
Earlier this summer, a federal district court in Washington certified questions to the Supreme Court of Washington concerning whether an insured can maintain a procedural bad faith claim despite the fact that coverage was properly denied. The case, entitled St. Paul Fire and Marine Ins. Co. v. Onvia, Inc., Docket No. C06-1056RSL (W.D. Wash.)(see here), involved a claim based on a class action involving the insured’s practice of distributing advertisements via fax.
Court Awards $8,490,666 In Damages, Including $6,000,000 In Punitive Damages, In Bad Faith Action Involving Policy With A $100,000 Limit
By Troutman Pepper Locke on
In a bad faith case involving wrongful denial of coverage of a wrongful death suit, a Pennsylvania Court awarded the policyholder’s assignee $8,490,666 in damages, despite the fact that the policyholder had pled guilty to voluntary manslaughter.
Massachusetts Court Applies Subjective Test Concerning Good Health Requirement In Life Insurance Policy
A Massachusetts court recently ruled that a “good health” requirement in a life insurance policy must be interpreted based upon what the contracting parties knew at the time the policy was issued (a subjective test), not based upon what in fact turned out to be true based on discoveries made at a later date (an objective test).
Princeton to Pay $20 Million to Settle Bad Faith Claim
By Troutman Pepper Locke on
Princeton Insurance Company recently agreed to pay $20 million to settle a bad faith claim related to a dram shop lawsuit brought against their insured. In the underlying lawsuit, a highway construction flagman sued Princeton’s insured, a tavern, after he was struck by a car driven by the tavern’s patron.
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Florida Appellate Court Holds That Injured Party Suing Tortfeasor’s Insurer for Bad Faith is Not Entitled to Privileged Communications Between Insured, Insurer, and their Joint or Separate Counsel
A Florida appellate court recently swam against a tide of decisions that have eroded the attorney-client privilege in bad faith litigation.
Florida Court Recognizes New Statutory Medical Malpractice Bad Faith Cause of Action
By Troutman Pepper Locke on
A Florida appellate court recently recognized a new statutory cause of action for bad faith in the handling of medical malpractice claims.
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