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Mealey's Insurance Bad Faith

  • August 18, 2025

    Insurer, Property Owner Seek Protective Order In Suit Over Defective Workmanship

    PHOENIX — An excess commercial insurer and an apartment complex owner asked an Arizona federal court to issue a protective order as to discovery in the insurer’s lawsuit seeking a declaration that an underlying $6 million stipulated judgment arising from defective workmanship claims cannot be enforced against it.

  • August 15, 2025

    Geico Bad Faith Coverage Claims Trimmed, But Breach Of Contract Claims Kept Alive

    LAS VEGAS — A Nevada federal judge granted in part and denied in part an auto insurer’s motion to dismiss a policyholder’s bad faith coverage suit, dismissing without prejudice claims for tortious and contractual breach of the implied covenant of good faith and fair dealing and violation of Nevada's Unfair Insurance Practices Act (NUIPA) but allowing breach of contract and punitive damage claims to proceed, while holding that it was premature for the insurer to invoke the genuine dispute doctrine.

  • August 14, 2025

    Pa. Federal Judge Dismisses Bad Faith Claim In Dust Contamination Coverage

    PHILADELPHIA — A Pennsylvania federal judge on Aug. 13 dismissed a bad faith claim alleged against a homeowners insurer after determining that the insureds, who are seeking coverage for an infiltration of dust in their home, failed to show that the insurer’s denial of coverage based on the policy’s exclusions for pollution and defective workmanship was unreasonable.

  • August 14, 2025

    N.J. Panel Affirms Dismissal Of Townhouse Owner’s Bad Faith Coverage Dispute

    TRENTON, N.J. — A New Jersey appeals panel affirmed a lower court’s dismissal of a townhouse owner’s breach of contract and bad faith lawsuit seeking coverage for underlying intentional interference, assault and harassment claims brought against him by a condominium association and its board members, finding that the underlying claims are premised on the plaintiff’s  intentional acts and intent to cause the alleged harm.

  • August 14, 2025

    Trial Court Did Not Err In Failing To Address Untimely Bad Faith Claims, Panel Says

    ALBUQUERQUE, N.M. — A trial court did not err in failing to address an assignee’s bad faith claims in a coverage dispute arising out of a shooting at an insured establishment because the bad faith claims were untimely raised in an amended complaint that was effectively denied when the trial court entered summary judgment in favor of the insurer on the issue of coverage, a New Mexico Court of Appeals panel said.

  • August 13, 2025

    Extracontractual, Breach Of Contract Claims Barred By Statute Of Limitations

    FORT WORTH, Texas — A Texas federal judge granted a homeowners insurer’s motion for summary judgment on breach of contract and extracontractual claims after determining that the claims are barred by the applicable two-year statute of limitations because the insureds filed suit more than two years after the claims accrued.

  • August 12, 2025

    Law Firm Credibly Alleges Breach Of Duty To Indemnify In Cyber Crime Coverage Suit

    SEATTLE — A federal judge in Washington held that a law firm insured plausibly alleges that a commercial cyber insurance policy covers its liability under the Security Breach Liability provision, refusing to dismiss the insured’s claim that the insurer breached its duty to indemnify.

  • August 11, 2025

    Insureds’ Breach Of Contract, Bad Faith Suit To Proceed Against Homeowners Insurer

    HAMMOND, Ind. — An Indiana federal judge denied a homeowners insurer’s motion to dismiss breach of contract and bad faith claims in a storm damage coverage dispute after determining that the insureds allege sufficient facts to support the breach of contract and bad faith claims.

  • August 11, 2025

    Insured Failed To Support Breach Of Contract Claim In Black Mold Coverage Suit

    ABERDEEN, Miss. — A Mississippi federal judge granted a homeowners insurer’s motion for summary judgment on an insured’s claims in a coverage dispute over black mold growth in the insured’s home after determining that the insured failed to show what portion of the policy the insurer allegedly breached and failed to show that the insurer did not have a reasonable basis for its coverage decision.

  • August 11, 2025

    Connecticut Judge Refuses To Strike Bad Faith Claims In Cryptocurrency Loss Suit

    MILFORD, Conn.— A Connecticut judge denied a homeowners insurer’s motion to strike  two claims for breach of the implied covenant of good faith and fair dealing in a coverage dispute arising from the insured’s cryptocurrency loss, finding that the insured has asserted specific conduct that indicates actions “with conscious bad faith design.”

  • August 11, 2025

    Insureds Failed To Show Coverage Decision In Storm Damage Dispute Was Unreasonable

    SAN ANTONIO — A Texas federal magistrate judge granted a homeowners insurer’s motion for summary judgment on extracontractual claims alleged by insureds seeking additional coverage for storm damage to their home after determining that the insureds failed to offer evidence showing that the insurer’s coverage decision was unreasonable.

  • August 08, 2025

    Issues Of Fact Exist As To Cause Of Insureds’ Sagging Subfloor, Judge Says

    FLORENCE, S.C. — A mobile home insurer is not entitled to summary judgment on breach of contract and bad faith claims because genuine issues of disputed fact exist regarding the cause of a sagging subfloor in the insureds’ mobile home, a South Carolina federal judge said.

  • August 08, 2025

    Bad Faith, Unfair Trade Practices Claims Cannot Proceed Against Homeowners Insurer

    RALEIGH, N.C. — An insured’s claims for bad faith and violations of North Carolina’s laws regulating unfair claims practices and deceptive trade practices cannot proceed against a homeowners insurer because the insured’s complaint asserts only that there was a reasonable disagreement about coverage for wet rot damage caused by a plumbing system leak in the insured’s home, a North Carolina federal magistrate judge said in granting the insurer’s motion for judgment on the pleadings.

  • August 07, 2025

    Insured’s Bad Faith Suit Against Auto Insurer Will Proceed, Federal Judge Says

    LOS ANGELES — A California federal judge denied an auto insurer’s motion to dismiss or stay an insured’s bad faith suit after determining that the bad faith claim alleged by the insured is not subject to arbitration and that a stay of the insured’s suit pending completion of the arbitration proceeding is not warranted.

  • August 07, 2025

    Insureds Sufficiently Support Breach Of Contract, Bad Faith Claims, Judge Says

    DENVER — Breach of contract and bad faith claims alleged against a homeowners insurer can proceed because the insureds stated sufficient facts to support a finding that the insurer’s refusal to pay for damages sustained to the insureds’ roof was a breach of contract and that the insurer’s conduct was not reasonable, a Colorado federal judge said in denying the insurer’s motion to dismiss.

  • August 05, 2025

    Bifurcation Of Extracontractual Claims In Storm Damage Dispute Not Warranted

    SHERMAN, Texas — Bifurcation of an insured’s breach of contract claim from the insured’s extracontractual claims is not warranted because the property insurer failed to meet its burden of showing that bifurcation would be economical or that the insurer would be prejudiced if the claims are tried together, a Texas federal magistrate judge said in denying the insurer’s motion.

  • August 05, 2025

    Insured’s Breach Of Contract, Bad Faith Suit Will Remain In Federal Court

    LOS ANGELES — An insured’s breach of contract and bad faith suit stemming from a dispute over coverage for the failure of a sump pump will remain in federal court because the insurer timely removed the suit within 30 days of recognizing that the amount in controversy met the federal jurisdictional minimum requirement, a California federal judge said.

  • July 31, 2025

    Texas Panel Renders Take Nothing Judgment In Hurricane Harvey Coverage Suit

    HOUSTON —A Texas appeals panel on July 31 reversed a lower court’s $643,000 final judgment against an insurer following a jury verdict in a coverage dispute over Hurricane Harvey damage and rendered judgment that the insured take nothing on his breach of contract and bad faith counterclaims against the insurer, holding that Ortiz v. State Farm Lloyds forecloses the insured’s counterclaims.

  • July 29, 2025

    Insureds’ Water, Mold Damage Suit Dismissed Following Parties’ Settlement

    CHICAGO — An Illinois federal magistrate judge dismissed an insureds’ breach of contract and bad faith lawsuit filed against a homeowners insurer seeking coverage for water and mold damage after the parties notified the court that a settlement was reached.

  • July 29, 2025

    11th Circuit Affirms Judgment For Insurer, Cites Mayoral Affidavit Inconsistency

    ATLANTA — The 11th Circuit U.S. Court of Appeals on July 28 affirmed a lower court’s order granting summary judgment to an insurer in a dispute with its insured over purported misrepresentations regarding a claim for vandalism to the insured’s home, finding in part that because the insured’s mayoral candidate affidavit in Brunswick, Ga., regarding his residency there was inconsistent with his insurance application representing Atlanta as his primary residence, “no reasonable jury” could find that these conflicting statements show “anything other than a knowing misrepresentation about his residency.”

  • July 29, 2025

    7th Circuit: Insurer Breached Policy By Failing To Pay Full Appraisal Award

    CHICAGO — The Seventh Circuit U.S. Court of Appeals concluded that a business insurer breached an insurance policy when it declined to pay the full appraisal award for the insured’s roof damage caused by a hailstorm, affirming a federal court’s grant of summary judgment in favor of the insured on its breach of contract claim.

  • July 29, 2025

    Remand Denied In Breach Of Contract, Bad Faith Suit Against Homeowners Insurer

    WILMINGTON, Del. — A federal judge in Delaware denied an insured’s motion to remand a breach of contract and bad faith suit arising out of a homeowners insurer’s denial of a water damage claim after determining that the insurer met its burden of showing that complete diversity of citizenship exists and that the federal jurisdictional amount-in-controversy requirement has been met.

  • July 28, 2025

    Delaying Discovery In Bad Faith Suit Not Warranted, Utah Federal Judge Says

    SALT LAKE CITY — A Utah federal judge denied an insurer’s motion to stay discovery until an opinion is issued on the insurer’s motion for summary judgment after determining that staying discovery will cause prejudice to the plaintiffs and will delay the resolution of the plaintiffs’ breach of contract and bad faith suit stemming from a claim for underinsured motorist (UIM) benefits.

  • July 25, 2025

    Insureds Sufficiently Support Bad Faith Claim In Water Damage Suit, Judge Says

    PHILADELPHIA — A bad faith claim alleged by insureds in a water damage coverage dispute can proceed because the insureds’ amended complaint alleges that the homeowners insurer’s denial of coverage was not reasonable based on the lack of evidence that the water damage was caused by a continuous leak, an excluded cause of loss, a Pennsylvania federal judge said July 24 in denying the insurer’s motion to dismiss the bad faith claim.

  • July 24, 2025

    Bad Faith Claim Cannot Proceed In Collapse Coverage Suit, Federal Judge Says

    PHILADELPHIA — An insured’s bad faith claim against a homeowners insurer in a dispute over coverage for the collapse of a floor within the insured’s home cannot proceed because the insurer’s reliance on its engineering reports in denying the insured’s claim was reasonable, a Pennsylvania federal judge said in granting the insurer’s motion for summary judgment.