Bad Faith Bulletin

Get the latest Extracontractual Claims Liability and Bad Faith legal news brought to you by Tressler’s experienced insurance attorneys.

In a recent per curiam decision, the Texas Supreme Court reversed a court of appeals decision holding that an insured’s claims under the Texas Prompt Payment of Claims Act (“TPPCA”) and for statutory and common law bad faith were barred by the payment under a unilateral appraisal clause. Steven Biasatti and Paul Gross d/b/a TopDog Properties v. GuideOne Insurance Company, ___ S.W.3d ___, 2020 WL 1898538, No. 18-0911 (Tex. April 17, 2020). In…
Reginald Cloyd III is an associate in the Commercial Litigation and Business Disputes Practice Group. Reggie has a broad range of experience representing individual and corporate clients in complex litigation matters, insurance coverage, local government and homeowner association matters. He has advised and defended clients with respect to claims for breach of contract, consumer fraud, negligence, and other torts. Reggie has also worked on intellectual property, bankruptcy, and trust and estate matters. He has experience…
Reginald Cloyd III is an associate in the Commercial Litigation and Business Disputes Practice Group. Reggie has a broad range of experience representing individual and corporate clients in complex litigation matters, insurance coverage, local government and homeowner association matters. He has advised and defended clients with respect to claims for breach of contract, consumer fraud, negligence, and other torts. Reggie has also worked on intellectual property, bankruptcy, and trust and estate matters. He has experience…
The Lima Delta Company v. Global Aerospace, Superior Court of the State of Delaware Case No. 16C-11 -21WCC CCLD, arose out of a claim after insured aircraft crashed off the end of the runway in Democratic Republic of Congo (“DRC”) in 2012.  The insurer prevailed in a subsequent action to rescind the policy in 2016 (“Rescission Action”).  In the interim, the insurer took control of the salvageable wreckage, including two engines and an auxiliary power…
The Lima Delta Company v. Global Aerospace, Superior Court of the State of Delaware Case No. 16C-11 -21WCC CCLD, arose out of a claim after insured aircraft crashed off the end of the runway in Democratic Republic of Congo (“DRC”) in 2012.  The insurer prevailed in a subsequent action to rescind the policy in 2016 (“Rescission Action”).  In the interim, the insurer took control of the salvageable wreckage, including two engines and an auxiliary power…
The United States District Court for the Middle District of Pennsylvania recently denied an insurer’s motion to sever and stay plaintiff’s bad faith claim from its breach of contract claim, finding that the convenience of the parties and judicial economy weighed against severance.  Further, it rejected the insurer’s argument that the resolution of the breach of contract claim would moot the bad faith claims. The plaintiff was a passenger in a vehicle that was struck…
The United States District Court for the Middle District of Pennsylvania recently denied an insurer’s motion to sever and stay plaintiff’s bad faith claim from its breach of contract claim, finding that the convenience of the parties and judicial economy weighed against severance.  Further, it rejected the insurer’s argument that the resolution of the breach of contract claim would moot the bad faith claims. The plaintiff was a passenger in a vehicle that was struck…
The Pennsylvania Supreme Court published perhaps its most anticipated insurance case of the year: Rancosky v. Washington National Ins. Co., 2017 WL 4296351 (Sep. 28. 2017).  In Rancosky, the court held that in order to prevail on a claim for insurer bad faith under 42 Pa. C.S. § 8371, a plaintiff must present clear and convincing evidence that an insurer lacked a reasonable basis for denying benefits under a policy, and the insurer knew…
The Pennsylvania Supreme Court published perhaps its most anticipated insurance case of the year: Rancosky v. Washington National Ins. Co., 2017 WL 4296351 (Sep. 28. 2017).  In Rancosky, the court held that in order to prevail on a claim for insurer bad faith under 42 Pa. C.S. § 8371, a plaintiff must present clear and convincing evidence that an insurer lacked a reasonable basis for denying benefits under a policy, and the insurer knew…
In Richard Igartua v. Mid-Century Insurance Co., No. 2:216-cv-00849-JAD-CWH (D. Nev. June 28, 2017), the District Court granted summary judgment to an insurer as to claims of bad faith, unfair claims practices and breach of contract, while methodically presenting a timeline of a well-handled claim. The plaintiff was injured when the tow-truck he was driving was rear-ended by another driver.  The insurer for the other driver paid him its policy limits of $25,000.  He…