The insured's property was damaged during Hurricane Katrina by wind, wind driven rain, flooding, storm surge and water in Jupiter v. Automobile Club Inter-Insurance Exchange, No. 07-1689, 2009 U.S. Dist. LEXIS 44083 May 26, 2009). Plaintiff recovered $225,500 from Allstate, its flood insurance carrier. The insured also held a homeowner's policy with Automobile Club
Bad Faith
Post-Loss Assignment Upheld By Another Louisiana Federal Court
By Tred R. Eyerly on
Consistent with the recent decision issued in In Re Katrina Canal Breaches Consolidated Litigation [prior post here], the District Court for the Western District of Louisiana upheld a post-loss assignment of a property policy. See Disaster Relief Serv. of North Carolina, LLC v. Employers Mutual Cas. Ins. Co., No. 07-1925, 2009 U.S. Dist. LEXIS…
Insured’s Motion for Summary Judgment on Bad Faith Denied
By Tred R. Eyerly on
The insured moved for summary judgment on bad faith because of the insurer's alleged delayed and incomplete payments after Hurricane Katrina destroyed property. See Plaquemines Parish School Bd v. Indus. Risk Insurers, No. 06-7213, 2009 U.S. Dist. LEXIS 20004 (E.D. La. March 11, 2009).
School buildings operated by the insured …
Jury’s Determination of Bad Faith Upheld by Californa Court of Appeal
By Tred R. Eyerly on
In McCoy v. Progressive West Ins. Co., B199978 (Cal. Ct. App. Feb. 26, 2009) [here], the appellate court upheld the jury's verdict finding bad faith arising from Progressive's denial of the insured's vehicle theft claim.
In March 2004, the insured's Ford Mustang was stolen in Las Vegas. When recovered, the Mustang, …
Damages For Mental Anguish Awardable for Delay in Adjusting Katrina Claim
By Tred R. Eyerly on
In a recent post, we discussed Dickerson v. Lexington Ins. Co., 2008 U.S. App. LEXIS 26504 (5th Cir. Dec. 22, 2008) where the Fifth Circuit determined damages for mental anguish were properly granted based on the insurer's bad faith delay in paying a claim after Hurricane Katrina. Dickerson controlled a subsequent decision by…
California Court of Appeal Affirms Bad Faith Ruling for Insurer’s Delays
By Tred R. Eyerly on
The California Court of Appeal upheld a bad faith ruling based on the insurer's delay in paying benefits. See Major v. Western Home Ins. Co., 2009 Cal. App. LEXIS 4 (Cal. Ct. App. Jan. 6, 2009).
The insureds' home was destroyed by a wild fire in October 2003. They held a homeowners policy from…
Hawai`i Supreme Court Reinstates Emotional Distress Claim Against Insurer
By Tred R. Eyerly on
Although the insurer's conduct did not amount to bad faith in Young v. Allstate Ins. Co., 119 Haw. 403 (Haw. 2008), the court held plaintiff's allegations of intentional infliction of emotional distress (IIED) were sufficient to survive a motion to dismiss.
Plaintiff alleged she was stopped in traffic when a car operated by an…
Court Awards Damages for Mental Anguish Based on Insurer’s Bad Faith
By Tred R. Eyerly on
Interpreting Louisiana law, the Fifth Circuit determined that damages for mental anguish were properly awarded based on the insurer's bad faith. See Dickerson v. Lexington Ins. Co., 2008 WL 5295389 (5th Cir. Dec. 22, 2008).
The insured's home was extensively damaged by Hurricane Katrina. He held a homeowner's policy issued by Lexington. The insured…
Washington Court Allows Bad Faith Action for Delay Even if No Coverage
By Tred R. Eyerly on
In a decision policy holders will appreciate, the Washington Supreme Court recently held the insured could pursue bad faith claims for delay in processing the claim even when there is no coverage under the policy. See St. Paul Fire and Marine Ins. Co. v. Onvia, Inc., 2008 Wash. LEXIS 1055 (Wash. Nov. 26, 2008).
The…
Court Ponders Whether the Insurer Bad Faith Committed If No Excess Judgment against Insured
By Tred R. Eyerly on
Does the insurer act in bad faith when there is no excess judgment against the insured? Further, is there bad faith when the insurer’s actions never resulted in the insured’s increased exposure to liability for more than the policy limits? These two issues confronted the Eleventh Circuit in Perera v. United States Fidelity …