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…

    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…

    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…

    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…

     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 …

     After enduring a tortured, ultimately failed attempt to negotiate a settlement under a renter’s protection policy, the insured sued.  The trial court granted United Services Automobile Association’s motion for summary judgment, but the Hawaii Intermediate Court of Appeals vacated the decision and remanded for a determination of whether USAA’s interpretation of its policy…

     In dual decisions, two motions for partial summary judgment were decided by the federal district court in Louisiana involving State Farm and its insureds.  See Perrien v. State Farm Ins. Co., 2008 U.S. Dist. LEXIS 53820 (E.D. La. July 14, 2008); Perrien v. State Farm Ins. Co., 2008 U.S. Dist. LEXIS…

     The Hawaii Supreme Court determined there was a genuine issue of fact on whether the insurer acted in bad faith in failing to consent to the insured's settlement with a third party tortfeasor.  See Guajardo v. AIG Hawaii Ins. Co., No. 27893 (Haw. Sup. Ct. July 8, 2008).

     The…