The 2023 Moody v. Oregon Community Credit Union decision reshaped Oregon’s bad-faith insurance law, allowing policyholders to claim emotional distress damages under Oregon’s Unfair Claim Settlement Practices Act (ORS 746.230) without proving physical impact. This ruling has since expanded insurer liability and introduced new remedies for bad-faith practices.
Key takeaways:
- Broader Insurer Liability: Emotional distress and punitive damages are now recoverable for statutory violations (Hinzman v. Foremost Insurance, Mohammad v. Liberty Insurance).
- Commercial Policyholder Protections: Courts confirmed ORS 746.230 applies beyond personal policies (Thanh Huynh v. Truck Insurance Exchange).
- Economic Damages Expansion: Insureds may recover extra-contractual damages, including lost profits (LiquidAgents Healthcare LLC v. Evanston Insurance Company).
To continue reading, click here for a deeper dive into these legal shifts.