Topic: Extra-Contractual Liability

Connecticut Federal Court: Multiple Unfair Practices in the Handling of a Single Insurance Claim do not Constitute a “General Business Practice”

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.” 

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Ninth Circuit Holds That Insurer’s Failure to Offer More Than Policy Limits Is Not Bad Faith

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. 

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NY Federal Court: Availability of Consequential Damages Not Limited to Commercial Property Insurance

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. 

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