Published: February 15, 2019

Richard McDonough suffered serious injuries to his neck and spine as a result of an automobile accident.  The insurer of the driver who caused the accident settled with McDonough for the driver’s full policy amount of $100,000.  However, this sum was allegedly insufficient to compensate McDonough for his losses.  McDonough then sought to collect underinsured benefits through his insurer, State Farm, up to the coverage limits of $300,000.  State Farm counter-offered with a lower amount and declined to pay McDonough the full amount of the $300,000 limit.  McDonough fi

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Published: February 13, 2019

Propitious, LLC owns a two-story building and leased the first floor of the property to Connacht, LLC, which used the space to operate a restaurant and sports bar.  Propitious insured the property under a policy issued by Badger Mutual Insurance Company; Connacht insured the restaurant and sports bar under a policy with Society Insurance.  In December of 2016, there was an incident in which multiple water pipes burst on the second floor and caused damage to the property and Connacht’s restaurant and sports bar on the first floor.  Following an investigation of the damage by e

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Published: February 8, 2019

After their living room ceiling collapsed, Heather and David Hutchinson submitted a claim for approximately $25,000 in damages to State Farm Fire & Casualty Company under their homeowners' policy. State Farm denied the claim and the Hutchinsons sued in Pennsylvania state court. In their complaint, the Hutchinsons sought the amount of their insurance claim (~$25,000) for breach of contract plus unspecified compensatory and punitive damages for bad faith denial under Pennsylvania's bad faith statute, 42 Pa. Cons. Stat. § 8371.

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Published: January 28, 2019

After a fire damaged their home, Robert and Janet Fuller submitted a claim under their homeowners policy with Safeco Insurance Company. Safeco denied the Fullers' claim on the basis that it had cancelled the policy for nonpayment of premium prior to the fire. The Fullers sued for breach of contract and bad faith; Safeco moved for summary judgment ... twice. 

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Published: January 23, 2019

The plaintiff in D.K. Prop., Inc. v. Nat'l Union Fire Ins. Co. of Pittsburgh, PA., No. 650733/17, 2019 WL 237454 (N.Y. App. Div. Jan. 17, 2019) claimed that its building began to shift and exhibit structural damage, including cracks, after construction work began in an adjoining building. Plaintiff filed a claim with National Union for the "direct physical loss [and] damage." National Union did not pay or deny the claim; instead, over the course of three years, it sent regular demands for additional information, keeping its investigation open.

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Published: January 11, 2019

Mariano and Joanne Mattei filed a complaint in the Court of Common Pleas of Philadelphia County against Liberty Mutual and the claims adjuster assigned to Mariano Mattei’s claim for coverage relating to a 2015 motor vehicle accident.

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Published: January 9, 2019

Lawrence Proctor submitted a claim to GEICO for damage to his RV that he claimed was caused by a January 6, 2015 motor vehicle accident. Proctor’s policy provided compensation for either the actual cash value of the damage property at the time of the loss or the amount necessary to repair the damaged property to its pre-loss condition. The policy specifically excluded compensation to any person who "knowingly conceals or misrepresents any material fact or circumstance" related to a claim.

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Published: August 23, 2018

Becca Franco was involved in a car accident in 2015.  Franco submitted a claim to her insurer, State Farm, for underinsured motor vehicle and medical payment benefits.  Sixteen months later, Franco filed suit against State Farm asserting breach of contract and bad faith claims.  State Farm moved for summary judgment on her bad faith claim.

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Published: August 21, 2018

Steven Reto was injured in a car accident in 2014.  After the underlying liability claim settled with the driver who caused the accident, the Retos filed a claim for underinsured motorist benefits with their insurer, Liberty Mutual.  Sometime thereafter, the Retos filed suit in state court against Liberty Mutual and the claims adjuster who handled their claim, asserting statutory bad faith and other causes of action.  Liberty Mutual removed the case to federal court, contending that its claims adjuster was fraudulently joined to defeat diversity of citizenship.  The Reto

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Published: August 16, 2018

After heavy snow destroyed a Slaubaugh Farm poultry house in Delaware, the farm called on its insurer to cover its loss.  After its claim was denied, the farm sued the insurer, alleging bad faith denial of coverage under Delaware law.  The Superior Court of Delaware, in Re: Slaubaugh Farm, Inc. v. Farm Family Cas. Ins. Co., No. CV S16C-06-033 ESB, 2018 WL 3559252 (Del. Super. Ct.

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