Extra-Contractual Liability

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The California Court of Appeals recently affirmed a decision granting State Farm’s special motion to strike a claim in a case involving alleged misrepresentations during a personal injury case.  Click here to view the unpublished decision.

Appellants were tenants in a home belonging to Jeane and Edward Dunne (the

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Read More California Court of Appeals Affirms Decision for State Farm in Misrepresentation Suit

Maldonado v. First Liberty Ins. Corp., 546 F. Supp. 2d 1347 (S.D. Fla. 2008), arose from an auto accident in which the insured’s wife collided with the father of three small children, causing his death  As soon as it became aware of the accident, the insurer notified the insured that “the nature and extent of the damages and injuries being claimed suggests there is a potential exposure in excess of your policy limits. . . .” 

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Read More Bad Faith – Florida District Court Grants Summary Judgment in Favor of Insurer

On July 23, 2008, New York Governor David Paterson signed into law what has been referred to as the “late notice bill” (Senate Bill 8610 and Assembly Bill 11541).  The new law states that it takes effect 180 days after the date it is signed into law, and applies to policies issued after that 180-day period.  Accordingly, the new law takes effect on January 19, 2009. 

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Read More BREAKING NEWS: New York Governor Patterson Signs Law Reversing New York’s “No-Prejudice” Precedent, Requiring That an Insurer Has Sustained “Material Prejudice” Before Disclaiming Coverage on Late Notice Grounds

The California State Court of Appeals recently reaffirmed that, under California law, claims made in one policy period and reported in a subsequent policy period are not covered under either of consecutive “claims made and reported” policies when both policies require that a claim be made and reported during the same policy period. 

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Read More California State Court: Claim Made In One Period And Reported In A Subsequent Period Not Covered By “Claims Made And Reported” Policy

A California state court of appeals recently held that an insurer properly denied coverage after its insured failed to timely report a “claim” after receiving a demand letter. 

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Read More California State Court of Appeal Holds That Demand Letter Was A “Claim” That The Insured Was Required To Report Under Its Insurance Policy

The New York Court of Appeals denied a motion for rehearing in the Bi-Economy Market, Inc. v. Harleysville Insurance Company of New York case, thereby leaving intact its February 2008 decision allowing insureds  to recover “consequential damages” for improper denial of coverage.  The Court’s denial was made without comment. 

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Read More New York Court of Appeals Denies Motion for Rehearing Regarding Award of Consequential Damages for Bad Faith Breach of Insurance Contract

In 316, Inc. v. Md. Cas. Co., Case No. 3:07cv528-RS-MD (N.D. Fla. May 21, 2008), an insured, whose commercial building had been damaged by Hurricane Ivan, alleged that its insurer acted in bad faith by refusing to pay for the damages. …
Read More Florida Bad Faith – Federal District Court Finds That Policyholder Failed To Sufficiently Plead Punitive Damages Claim

For the second time in just over a year, both houses of the New York Legislature passed a bill that would reverse New York’s longstanding “no-prejudice” rule.  Senate Bill 8610 and Assembly Bill 11541 (the “Bill”) prohibits insurers from denying a claim based on late notice unless the insurer can show that it was prejudiced by the untimely notice. …
Read More NY Legislature Passes Late Notice Bill Reversing Longstanding “No-Prejudice” Rule

A federal district court in Virginia recently ruled that under Virginia law, an insured may not recover punitive damages in connection with a bad faith claim against its insurer.  TIG Insurance Co. v. Alfa Laval, Inc., Civil Action No. 3:07CV683 (E.D.Va., March 5, 2008).  The court explained that under Virginia law, a bad faith action against an insurer is a contract action, not an independent, willful tort for which punitive damages might be appropriate. …
Read More Virginia Federal Court Rules that Punitive Damages Are Unavailable in Insurance Bad Faith Case

The Federal District Court for the Western District of Kentucky recently denied a defendant insurer’s request to limit discovery in a bad-faith case to its pre-litigation conduct and to not include conduct post-commencement of litigation. 

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Read More Kentucky Federal Court: Bad Faith Discovery Not Limited To Pre-Litigation Conduct