In This Issue:
- Southern District of California Denies Motion to Dismiss Bad Faith Claim in Homeowners Policy Dispute
- Northern District of Indiana: No Bad Faith Where Insurer Has a Rational Basis for its Coverage Position
- Middle District of Florida: Court Denies Summary Judgment For Insured On First-Party Bad Faith Claim Where Permanence Of Injury Was Initially Unclear
- Middle District of Pennsylvania: Mere Delay Does Not Constitute Bad Faith
- Excerpt from Southern District of California Denies Motion to Dismiss Bad Faith Claim in Homeowners Policy Dispute:
Plaintiffs suffered severe fire damage to their home and submitted a claim to Allstate Insurance Company under a Deluxe Plus Homeowners Policy. Plaintiffs alleged that Allstate “caused signifi cant delays in handling and resolution of Plaintiffs’ claim and... generally mishandled the claim,” by failing “to immediately assign an experienced adjuster” and delaying “in acknowledging, recognizing, or classifying Plaintiffs’ loss as a major claim or major loss.” Plaintiffs also charged Allstate with failing “to conduct a prompt, full and complete investigation of the facts and circumstances giving rise to Plaintiffs’ claims,” and “[u]sing improper standards to deny Plaintiffs’ claims.”
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