Reinsurance Law Blog

Reinsurance Law Blog

Tag Archives: good faith

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

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

Failure to cooperate by producing income tax records results in judgment for insurance company 11th Circuit, applying Georgia law

Posted in Contractual Liability
In Hsu v. Safeco Ins., Hsu sued Safeco to recover on a homeowner’s policy.  But Hsu had not provided Safeco with the tax returns Safeco requested before Hsu filed suit.  Safeco got summary judgment because providing the tax returns was a condition precedent to filing suit. Specifically, the district court held that Plaintiffs were not… 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

$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

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

Failure to reevaluate case after partial summary judgment is bad faith 8th Circuit, Nebraska

Posted in Insurance Bad Faith, New Case
In Bamford, Inc. v. Regent Insurance Company, one of Bamford’s employees caused an accident and Bamford told Regent to settle the resulting claims within its policy limits of $6M.  There was no settlement, and a judgment was entered against Bamford for $10.6M.    The damages included a claim on behalf of the other driver’s estate.  A… Continue Reading

Reinsurance arbitration clause invalidated; Missouri law

Posted in Contractual Liability, Duty to Defend, Insurance Bad Faith, New Law
In Leonberger v. Missouri United School Insurance Council, a bus driver accidentally killed a student after he left the bus.  There was a lawsuit, and the criminal acts exclusion was raised after the driver pled guilty to the charge of second-degree involuntary manslaughter. After the student’s parents got an $11.5M judgment, the driver sued the… Continue Reading

Occurrence, Faulty Workmanship, Choice of law, Contractual liability exclusion, CGL policy; Oklahoma and Kentucky law

Posted in Duty to Defend, Insurance Bad Faith, New Case
In Kentucky Bluegrass Contracting, LLC v. Cincinnati Insurance Co., 2015 OK CIV APP 100, the trial court erred in finding that Kentucky law applied to the claim — but the error was harmless since the result was the same under either Oklahoma or Kentucky law.  Kentucky Bluegrass Contracting (KBC) did some electrical work at a… Continue Reading

Primary insurer has no duty to initiate settlement discussions — 5th Circuit, Mississippi law

Posted in Contractual Liability, Insurance Bad Faith, New Case
Previously, we told you about SRM, Inc. v. Great American Ins. Co., No. 14–6160 where the Tenth Circuit said there was no duty of an excess carrier to initiate settlement discussions (See post here) Now the Fifth Circuit has ruled there is no duty on a primary insurer to initiate settlement discussions, even where liability… Continue Reading

Excess Insurer Had No Duty to Initiate Settlement Negotiations with Third-Party Claimant 10th Circuit , Oklahoma

Posted in Insurance Bad Faith, New Case, Uncategorized
Under Oklahoma law, a primary insurer owes its insured a duty to initiate settlement negotiations with a third-party claimant if the insured’s liability to the claimant is clear and the insured likely will be held liable for more than its insurance will cover. Here the insured, SRM, Inc., seeks to extend this obligation to its… Continue Reading

New Tennessee bad faith law does not preclude punitive damages

Posted in Insurance Bad Faith, New Case
In Carroll v. Nationwide Property & Cas. Co., No. 2:14–cv–02902–STA (W.D. Tenn. June 8, 2015; Defendant wanted Plaintiffs’ punitive damage claim dismissed since the statute which allowed bad faith claims said it was exclusive, except as to common law claims.  But the district court disagreed, noting that the statutory language precluded statutory treble damages, but… Continue Reading

Insurer may be required to replace all siding if only part is damaged — Missouri law

Posted in Contractual Liability, Insurance Bad Faith, New Case
In Alessi v. Mid-Century Ins. Co., hail damaged one side of Alessi’s house. The siding on the house was no longer available so Alessi wanted Mid-Century to replace the siding on the whole house, while Mid-Century wanted to replace only the damaged side. Summary judgment to the insurer, Mid-Century , was reversed and the case… Continue Reading

Insureds’ fraud results in void policy and $4.1 Million Judgment in Insurer’s Favor — Missouri

Posted in Contractual Liability, Insurance Bad Faith, New Case
In Akers v. Auto-Owners (Mut.) Ins. Co, (2015 WL 3714595) the insurer paid its insureds over $3.5M after a house fire.  The insureds, (the Akers) claimed the insurer still owed them more money and sued them.  In discovery, the Insurer found that the Insureds had prepared fraudulent invoices to inflate their losses.  The Insurer then… Continue Reading