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Category Archives: Insurance Bad Faith

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No claim of bad faith or breach of contract against rental car company where insurance was declined — Missouri

Posted in Contractual Liability, Duty to Defend, Insurance Bad Faith
In Clayborne v. Enterprise, Parker rented a car from Enterprise.  Parker declined insurance coverage and supplemental insurance when he rented the car.  Then he was in an accident and hit Clayborne.  Enterprise declined to defend the subsequent suit which Parker claimed was bad faith.  But summary judgment to Enterprise was affirmed.  Enterprise and ELCO (Enterprise’s… Continue Reading

Summary judgment to homeowner insurance company reversed on burst pipe claim — 10th Circuit, Utah

Posted in Contractual Liability, Insurance Bad Faith
In Wheeler v. Allstate Insurance Company, Wheeler insured his cabin with Allstate.  A friend stopped by the cabin in the spring and found a pipe had burst and there was water in the basement.  There was extensive damage.  It was determined that the pipe burst two months before discovery and was likely caused by a… Continue Reading

No bad faith for delay in appraisal where there were coverage issues — 10th Cir Oklahoma

Posted in Insurance Bad Faith
This is the second case involving Hayes Family Trust v. State Farm Fire & Casualty.  The first case, involving the appraisal process, is discussed here.  In this case, the policyholder claimed that State Farm acted in bad faith when it delayed the appraisal process because of coverage issues and when it failed to adequately investigate… Continue Reading

Criminal Acts exclusion did not apply to negligent conduct even if the conduct leads to a criminal conviction — Missouri

Posted in Contractual Liability, Insurance Bad Faith
In Pitt v. Leonberger, the Missouri Court of Appeals ruled that the criminal conduct exclusion did not apply. Leonberger, a school bus driver, struck and killed Pitts’ son.  The insurer, Missouri United School Insurance Council (MUSIC), accepted liability and even hired an attorney to represent Leonberger when a criminal charge of negligent homicide was filed against… Continue Reading

Bad faith claim for failure to pay workers compensation benefits may proceed — Oklahoma

Posted in Insurance Bad Faith, New Case
In Meeks v. Guarantee Insurance Co., 2017 OK 17,  the employee sued the insurer for bad faith refusal to timely comply with several orders of the Workers’ Compensation Court awarding employee temporary total disability benefits after insurer–without good cause–withheld employee’s benefits on twenty-six separate occasions. The insurer moved for dismissal, asserting employee failed to obtain… Continue Reading

No coverage under builders risk policy for damage to the existing structure — 10th Circuit Colorado

Posted in Contractual Liability, Duty to Defend, Insurance Bad Faith
In Gerald H. Phipps, Inc. v. Travelers Property Casualty, the Tenth Circuit affirmed summary judgment to Travelers Property Casualty on a builders’ risk policy.  The policy covered the builder’s work on the property, not the property itself.  So, when water damaged the property while roof work was being performed by the policyholder, Phipps, there was… Continue Reading

Questions of reasonableness are for jury, not summary judgment — UM bad faith — Oklahoma law

Posted in Insurance Bad Faith
In Falcone v. Liberty Mutual, Falcone made an uninsured motorist claim (UM claim) for injuries arising out of an auto accident with an uninsured driver.  Falcone was a passenger in her mother’s car, and Liberty was the UM insurer.  Falcone was taken by ambulance to the OU Medical Center Emergency Room, and was then transferred… Continue Reading

Failure to disclose claim against insurance company in bankruptcy petition fatal — judicial estoppel — 10th Circuit, Colorado

Posted in Insurance Bad Faith, New Case
In Hermann v. Hartford Casualty Insurance, Hermann claimed Hartford unreasonably denied and delayed payment for his workers’ compensation claim.  Hartford moved for summary judgment, arguing that Hermann’s action should be barred under the doctrine of judicial estoppel because Hermann did not disclose his claim against Hartford in his bankruptcy petition. The judgment in favor of… Continue Reading

Whether the insurer’s investigation of a claim was reasonable was a question of fact precluding summary judgment 10th Circuit, Colorado

Posted in Insurance Bad Faith
In Peden v. State Farm Mutual Auto Ins Co., the Tenth Circuit reversed a summary judgment in favor of State Farm on a uninsured / underinsured motorist claim.  State Farm had both the liability coverage and the UM / UIM coverage.  State Farm paid $240,000 on the liability coverage, and after suit was filed, paid… Continue Reading

Choice of law for bad faith claim follows tort law, most significant relationship — Oklahoma

Posted in Insurance Bad Faith
In Martin v. Gray, 2016 OK 114, Martin was injured in an Oklahoma accident by Gray.  Martin’s insurance  was purchased by her parents while they lived in Kansas. She was, however, a listed/rated driver in the policy. Before the collision, Insured’s parents notified the Kansas agent that she was moving to Oklahoma to live with… Continue Reading

7th Circuit affirms order requiring payment of life insurance benefits to a stranger with no insurable interest — Wisconsin law

Posted in Contractual Liability, Insurance Bad Faith
In U.S. Bank National Association v. Sun Life Assurance Company, (opinion by Judge Posner)Sun Life issued a $6M life policy on Margolin in 2007.  In 2011, US Bank bought the policy and kept up the premiums.  In 2014, Margolin died.  Sun said it was looking into whether it had to pay the policy and US… Continue Reading

Fact questions preclude summary judgment on breach of contract and bad faith claims — WD Oklahoma

Posted in Contractual Liability, Insurance Bad Faith
In Neill v. State Farm Fire & Cas. Co., CIV-13-627-D, 2016 WL 4384793, (W.D. Okla. Aug. 16, 2016), Neill sued State Farm for breach of contract and bad faith for failure to pay enough on a tornado claim.  There were factual issues which precluded summary judgment on the contract claim — specifically, whether the repair… Continue Reading

Claim file discoverable on issue of duty to defend — WD Okla applying Illinois law

Posted in Contractual Liability, Duty to Defend, Insurance Bad Faith
In Federal Insurance Company v. Indeck Power Equipment Company, CIV-15-491-D, 2016 WL 5173402 (W.D. Okla. Sept. 21, 2016) the trial court granted a motion to compel discovery of a claim file.  The case had been bifurcated for discovery between duty to defend and bad faith. According to Federal, information regarding the claim file relates to… Continue Reading

New Issue of Coverage Opinions out

Posted in Contractual Liability, Duty to Defend, Insurance Bad Faith
There is a new issue of Coverage Opinions out.  The newsletter discusses, inter alia: Update From The Reporters On The ALI Restatement Of Liability Insurance A Monster: Insurer Sasquashed: #1 Coverage Case Of 2016 ABSOLUTE MUST READ: Bad Faith: Turning $30K into $3M (And Easily Preventable) Consequences For Breach Of The Duty To Defend This… Continue Reading

Insurer’s Delayed Loss Adjustment & Misleading Insured about Settlement May Constitute Bad Faith – 8th Circuit, Iowa

Posted in Contractual Liability, Insurance Bad Faith, New Case
Bruhn Farms Joint Venture v. Fireman’s Fund Ins. Co. involved a dispute over the adjusted value of hail-damaged crops. The insured notified the insurer of the hail damage. Over a month later, the insurer adjusted the loss. Additional inclement weather had further damaged the crops and all salvageable crops had been harvested. Still, the insurer… Continue Reading

Failure to Provide Expert Witness Report until Eve of Trial Warrants Exclusion – 8th Circuit, Minnesota

Posted in Insurance Bad Faith
In Amplatz v. Country Mut. Ins. Co., an insured sued her insurance company for property damage caused by hail, water and wind. The insurance company denied coverage of water damage to the interior because the water leaked inside due to the insured’s deferred maintenance. The insured obtained an expert witness report stating water leaked inside… Continue Reading

Lack of Physical, Practical Means to Access Property Does Not Render Title Unmarketable; 10th Circuit, Colorado

Posted in Contractual Liability, Insurance Bad Faith
In Fidelity Nat. Title Ins. Co. v. Woody Creek Ventures, L.L.C., an insured sued its title insurance company claiming the title was unmarketable because the insured lacked a permanent right of access between parcels. The insured claimed the thirty-year revocable right of way provided by the insurer to access the second parcel was insufficient. Judgment… Continue Reading

Wyoming Oil & Gas Insurance Policies Exempt from Anti-Indemnity Statute; 10th Circuit, Wyoming

Posted in Contractual Liability, Duty to Defend, Insurance Bad Faith, New Case
In Lexington Ins. Co. v. Precision Drilling Co., L.L.P., the insurer sued the insured after an accident on the insured’s oil rig. The insurance policy was purchased by the oil rig management company. The insurer claimed the policy violated the Wyoming Anti-Indemnity Statute because the policy was purchased by a third party and the statute… Continue Reading

$2M+ verdict upheld for failure to pay uninsured motorist benefits – 10th Circuit, Colorado

Posted in Insurance Bad Faith, New Case
In Etherton v. Owners Insurance Company, Etherton was hurt in a car wreck and had 3 back surgeries.  He settled with the other driver for $250,000 and wanted $750,000 from his uninsured / underinsured motorist carrier — the remainder of his $1M policy limit. The UM carrier (Owners) offered $150,000, because it did not believe… Continue Reading

Missouri under-insured motorist coverage did not apply where liability limits were higher than UIM limits 8th Circuit

Posted in Contractual Liability, Insurance Bad Faith, New Case
In Burger v. Allied Property and Cas. Ins. Co., Burger was injured in a car accident.  The other driver paid Burger the policy limits of $100,000 for damages, but Burger had additional damages so she made a claim against Allied for underinsured motorist coverage.  Summary judgment to Allied was affirmed.  The policy defines an “underinsured… Continue Reading

Underground water exclusion in homeowners policy unambiguous; 8th Circuit (Arkansas law)

Posted in Insurance Bad Faith, New Case
In Bull v. Nationwide Mutual Fire Insurance Company, Bull sued Nationwide when it failed to pay for damages caused by water that leaked from a buried pipe located beneath the garage-floor slab of Bull’s home. Summary judgment to Nationwide was affirmed on appeal.  Bull’s policy contained an exclusion for loss caused by “water … below… Continue Reading

Denial of a fairly debatable claim may be unreasonable — 10th Circuit Colorado

Posted in Contractual Liability, Insurance Bad Faith, New Case
In Home Loan Investment Co. v. St. Paul Mercury Insurance Co., St. Paul denied a claim made by Home Loan because Home Loan was not in “possession” of the property insured.  (Home Loan, holder of the mortgage, had decided to help the homeowner sell the property, rather than foreclose on it).  A jury found that… Continue Reading
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