In a February 8, 2010 blog post, which can be found here, we reported on a then-recent jury verdict in which a Connecticut jury awarded nearly $15 million to a class of automotive body shop plaintiffs based on the jury’s finding that the insurance company defendant violated the Connecticut Unfair Trade Practices Act.
Read More Cigarette Rule Update – Still Smokin’ in Connecticut
Extra-Contractual Liability
Nevada Federal Judge Finds No Breach of Contract or Bad Faith Where Insurer Ceased Payment to Policyholders for Chiropractic Services Following Auto Accident
By Troutman Pepper Locke on
A Nevada federal judge has determined that an insurer did not breach its contract or act in bad faith when it terminated payment for chiropractic services for two policyholders injured in an automobile accident. The Court found that the plaintiff policyholders failed to counter medical testimony that they did not require additional chiropractic care because the “maximum medical improvement” had been reached. …
Read More Nevada Federal Judge Finds No Breach of Contract or Bad Faith Where Insurer Ceased Payment to Policyholders for Chiropractic Services Following Auto Accident
“Bare Averment” Insufficient to Maintain Bad Faith Claim in New Jersey for Underinsured-Motorist Benefits
By Troutman Pepper Locke on
A New Jersey federal judge dismissed a bad-faith claim for underinsured-motorist benefits, finding that Plaintiff’s complaint lacked necessary factual support and did not rise above the level of “bare averment.” The Court also dismissed Plaintiff’s claim for punitive damages, finding that Plaintiff failed to allege sufficient facts to show egregious circumstances or that the insurer’s conduct was wantonly reckless or malicious. …
Read More “Bare Averment” Insufficient to Maintain Bad Faith Claim in New Jersey for Underinsured-Motorist Benefits
Pennsylvania Federal Court Dismisses Bad Faith Claim as Subsumed by Breach of Contract Claim, But Allows Statutory Bad Faith Claim
By Troutman Pepper Locke on
Recently, a Pennsylvania federal court dismissed a bad faith claim against an insurer on the grounds that the claim was subsumed by the plaintiff’s breach of contract claim in the same proceeding. …
Read More Pennsylvania Federal Court Dismisses Bad Faith Claim as Subsumed by Breach of Contract Claim, But Allows Statutory Bad Faith Claim
Federal Court in Ohio Recognizes Cause of Action for Insurer Bad Faith Outside Claim Handling Context
By Troutman Pepper Locke on
Posted in Coverage & Claims, Extra-Contractual Liability
“Although Ohio courts have generally found independent tort liability only in cases of improper processing and handling of claims,” the U.S. District Court for the Northern District of Ohio held that a claim predicated on an insurer’s failure to refund unearmed premiums can support an independent claim for bad faith. …
Read More Federal Court in Ohio Recognizes Cause of Action for Insurer Bad Faith Outside Claim Handling Context
Connecticut Jury Awards $14.7 Million Against Insurer for Violation of Unfair Trade Practices Act in Auto Body Shop Class Action Lawsuit; Continued Vitality of “Cigarette Rule” at Issue
In a class action lawsuit brought by various auto body shops and the Auto Body Association of Connecticut, a Connecticut jury recently rendered a $14.7 million verdict against an insurance company for allegedly violating the Connecticut Unfair Trade Practices Act, Conn. Gen. Stat. §42-110a et seq. (“CUTPA”).
Connecticut Trial Court Holds That “General Business Practice” Element of an Unfair Settlement Practice Claim Requires Multiple Acts of Misconduct Against Multiple Insureds
A Connecticut trial court recently held that the “general business practice” element of an unfair settlement practice claim under the Connecticut Unfair Insurance Practices Act, Conn. Gen. Stat. §38a-816(6) (“CUIPA”) requires that a plaintiff prove multiple unfair practices by an insurer against more than one insured. …
Read More Connecticut Trial Court Holds That “General Business Practice” Element of an Unfair Settlement Practice Claim Requires Multiple Acts of Misconduct Against Multiple Insureds
Ninth Circuit: Automobile Insurer Did Not Engage in Bad Faith by Refusing to Pre-Authorize Treatment Under PIP Coverage
By Troutman Pepper Locke on
In Sadler v. State Farm Mutual Automobile Insurance Company, No. 08-35859 (9th Cir. Nov. 4, 2009), the insureds sued their insurer for bad faith, among other claims, arising from their insurer’s refusal to pre-authorize surgery under the personal injury protection (“PIP”) provision of the automobile insurance policy.
Ohio District Court Holds Supplier of Defective Materials is Not a Subcontractor For Purposes of Exception to “Your Work” Exclusion
By Troutman Pepper Locke on
In Mosser Constr. Inc. v. Travelers Indem. Co., Civil Action No. 3:08CV2363 (N.D. Ohio Oct. 26, 2009) (Zouhary, J.), an Ohio District Court was confronted with the question of whether a company that supplied crushed stone backfill to a general contractor is a “subcontractor” within the meaning of the insurance policy, or merely a “material supplier.”
Kentucky Law is Found Ambiguous by Federal District Court as to Whether Agents Can be Sued for Bad Faith and Thus Joinder of Agent Allowed Even Though Destroys Diversity
By Troutman Pepper Locke on
In North American Specialty Insurance Co. v. John Paul Pucek, et al., Docket No. 5:09-CV-49 (JMH) (E.D.KY Nov. 4, 2009), the owners of a thoroughbred horse purchased an equine mortality insurance policy. During the policy period, the horse sustained an injury that ultimately resulted in the horse being euthanized.