In an issue of first impression in Hawaii, the Hawaii Supreme Court ruled that an insurer's actions before an actual claim is submitted can be considered in determining whether the insurer acted in bad faith. Adams v. Hawaii Medical Service Ass'n, 2019 Haw. LEXIS 263 (Haw. Sept 30, 2019). Disclosure – our
Bad Faith
Insurer Not Entitled to Summary Judgment on Construction Defect, Bad Faith Claims
By Tred R. Eyerly on
The federal district court denied the insurer's motion for summary judgment seeking to establish there was no coverage for construction defect claims and for bad faith. Country Mut. Ins. Co. v. AAA Constr. LLC, 2019 U.S. Dist. LEXIS 115935 (W.D. Okla. July 12, 2019).
Jeffrey and Tammy Shaver entered two…
Breach of Contrat Claim Barred by Suit Limitation Provision, Bad Faith Claim Barred by Statute of Limitations
By Tred R. Eyerly on
The insured's breach of contract and bad faith claims were dismissed based upon the suit limitation provision and the statute of limitations. Mail Quip, Inc. v. Allstate Ins. Co., 2019 U.S. LEXIS 87923 (E.D. Pa. May 23, 2019).
Plaintiff alleged that on March 17, 2015, an ink cartridge refill machine…
Punitive Damage Award for Bad Faith Upheld
By Tred R. Eyerly on
Punitive damages that were reduced by the trial court to $1 million fro $4 million were affirmed by the appellate court. Mazik v. Geico Gen. Ins. Co., 2019 Cal. App LEXIS 454 (Cal. Ct. App. May 17, 2019).
Mazik was injured in a serious auto accident. He was diagnosed with…
Cross Motions on Coverage for Collapse Denied
By Tred R. Eyerly on
Cross-motions for summary judgment designed to determine coverage for the Church’s collapse claim were both denied. Bethel Missionary Baptist Church v. S. Must. Church Ins. Co., 2019 U. S. Dist. LEXIS 24705 (W. D. N. C. Feb. 15, 2019).
The Church sought summary judgment on its claim for bad faith, arguing that…
Consequential Damage Claims for Insurer’s Bad Faith Dismissed
By Tred R. Eyerly on
Partial dismissal of the insured's complaint seeking consequential damages for the insurer's bad faith was granted by the court. Bryant v. General Cas. Co., 2019 U.S. Dist. LEXIS 15369 (N.D. N.Y. Jan. 30, 2019).
Bryant purchased from General Casualty Company of Wisconsin (GCCW) a commercial property and casualty policy to…
Confusion in Renewing Policy Leads to Coverage
By Tred R. Eyerly on
The court determined the insurer must defend after confusion arose in renewal of the insured's policy. Nat'l Fire & Marine Ins. Co. v. Infini PLC, 2019 U.S. Dist. LEXIS 1052 (D. Ariz. Jan 3, 2019).
The insured, Infini, was insured by Lexington Insurance Company for medical procedures it performed. Wells…
Insured May Recover Consequential Damages From Insurer’s Breach of Duty to Defend
By Tred R. Eyerly on
Answering a certified question, the Nevada Supreme Court determined that an insurer breaching its duty to defend may be liable for consequential damages caused to the insured. Century Sur. Co. c. Andrew, 2018 Nev. LEXIS 112 (Nev. Dec. 13, 2018).
Michael Vasquez struck a minor, causing significant brain injury. Vasquez used the…
Eighth Circuit Affirms Judgment for Bad Faith after Insured’s Home Destroyed by Fire
By Tred R. Eyerly on
The Eighth Circuit affirmed the district court's judgment that the insurer acted in bad faith when it denied the insured's claim based upon misrepresentations in the application after destruction of his house by fire. Hayes v. Metropolitan Pro. and Cas. Ins. Co., 2018 U.S. App. LEXIS 31813 (8th Cir. Nov. 9, 2018).…
Full Coverage Extended for Loss of BitCoin
By Tred R. Eyerly on
The Court of Common Pleas in Ohio determined that BitCoin was property and denied the insurer's motion for judgment on the pleadings seeking to establish there was limited coverage for the loss. Kimmelman v. Wayne Ins. Group, 2018 Ohio Misc. LEXIS 1953 (Ohio Misc. Sept. 25, 2018).
James Kimmelman submitted…