Extra-Contractual Liability

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In an unpublished two page decision filed August 11, 2009, the United States Court of Appeals for the Fifth Circuit upheld a $21.6 million jury verdict in favor of a New Orleans grocer with approximately $1 million in bad faith damages. …
Read More Fifth Circuit Upholds Jury Verdict Against Insurer in Hurricane Katrina Case

A state appellate court in Louisiana recently increased a trial court’s award against an insurer in connection with a Hurricane Katrina-related bad faith claim, finding that the trial court had misinterpreted the statutory penalties available to the plaintiff. 

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Read More Louisiana Appeals Court Increases Trial Court Award to $1.3 Million in Statutory Penalties in Katrina Bad Faith Case

The United States District Court for the District of Connecticut recently granted in part an insurer’s motion to dismiss on the basis that the insured could not prove a violation of the Connecticut Unfair Insurance/Trade Practices Acts because allegations of multiple unfair practices in dealing with a single insurance claim are not sufficient to constitute a “general business practice.” …
Read More Connecticut Federal Court: Multiple Unfair Practices in the Handling of a Single Insurance Claim do not Constitute a “General Business Practice”

The First Circuit recently held that an insured was not entitled to coverage under a Professional Liability claims made and reported policy where the claim is not both made against the insured and reported to the insurer within the policy period. …
Read More First Circuit: No Coverage Under Claims Made and Reported Policy If Insured Fails to Report Claim within Policy Period

Last month, the Connecticut Appellate Court ruled that where coverage is excluded under a policy of insurance, a plaintiff may not pursue a bad faith claim against the insured in connection with the insured’s denial of coverage. 

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Read More Connecticut Appellate Court: Plaintiff May Not Maintain Bad Faith Claim in Connection With a Denial of Coverage Where Coverage is Excluded

In Taylor v. Sentry Group of Companies, No. 08-35116 (9th Cir. May 20, 2009), the plaintiff was severely injured in an automobile accident, with medical expenses alone exceeding $200,000.  The tortfeasor’s insurance policy had a limit of only $25,000.  The tortfeasor’s insurer offered the plaintiff the entire policy limits as settlement on three separate occasions.  Each offer was rejected by the plaintiff. …
Read More Ninth Circuit Holds That Insurer’s Failure to Offer More Than Policy Limits Is Not Bad Faith

In Ginther v. Farmers New Century Insurance Company, No. 04-3478 (3d Cir. Apr. 21, 2009), the United States Court of Appeals for the Third Circuit recently upheld “the other household vehicle exclusion” contained in an automobile insurance policy. …
Read More Third Circuit Upholds Validity of Other Household Vehicle Exclusion

Last month, a federal district court in Alabama ruled, as a matter of first impression that, under Alabama law, a litigant seeking to pursue an insurance bad faith claim against an insurer must have a direct contractual relationship with that insurer. 

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Read More Alabama Federal Court: Third-Party Beneficiary to Insurance Policy May Not Pursue Bad Faith Claim

In Woodworth v. Erie Insurance Company, No. 05-CV-6344CJS (Jun. 12, 2009), the federal district court for the Western District of New York held that recovery of consequential damages under Bi-Economy Mkt., Inc. v. Harleysville Ins. Co. of NY, 10 N.Y. 3d 187 (2008), is not limited to commercial property insurance claims. …
Read More NY Federal Court: Availability of Consequential Damages Not Limited to Commercial Property Insurance