The parent of an infant sued Kim Eichle for Eichle’s alleged negligence in serving alcohol to her houseguest, Jacob Russo, who allegedly assaulted the infant, and for negligence in failing to keep the sidewalk at her...more
In our January insurance update, we include three state cases addressing some less common situations. It’s not often that a pollution exclusion is interpreted in the context of an auto policy. But the South Dakota Supreme...more
In State Farm Fire & Cas. Co. v. Tamagawa, Index No. 510977/2021, 2023 N.Y. Misc. Lexis 5434, the Supreme Court of New York considered whether an insurance carrier can settle its property subrogation lawsuit with the...more
First Department Affirms That Business Interruption From COVID-19 Not Covered- The insured purchased a commercial property policy that included business interruption coverage for its restaurants. The restaurants were...more
On June 28, 2019, a divided Supreme Court of Texas issued a pair of important opinions addressing how an insurer’s timely payment of an appraisal award impacts the viability of a policyholder’s contractual and...more
More than a year ago, we examined the agonizing history of Vanderhall, a single case spanning several years, marked by a panoply of fact twists, struggling to achieve a finding of bad faith. So tortuous was the history that...more
Mitchell v. State Farm Fire and Casualty Company, No. 3:17cv00170-M, 2018 WL 4572664 (N.D. Miss. Sept. 24, 2018) - Lorine Mitchell submitted a claim to State Farm for damage to her property from a storm. Under the terms of...more
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...more
After Melissa Parisi sustained injuries in a vehicle collision and learned that the other motorist involved in the crash carried only $15,000 in auto insurance, she submitted an underinsured motorist (UIM) claim to State...more
In Florida, an insured cannot bring a first-party bad faith claim based on a claim for UM coverage unless the insured first files a Civil Remedy Notice (CRN) with the Florida Department of Financial Services. In Mathurin v....more
Ortiz v. State Farm Lloyds, No. 04-17-00252-CV, 2017 WL 5162315 (Tex. Ct. App. Nov. 8, 2017). Oscar Ortiz submitted a claim to State Farm for damage to his property resulting from wind and a hailstorm. After inspecting the...more
In August 2011, Jeffrey Vanderhall was riding his bicycle when he was hit by a car and seriously injured. It is now six years, three courts and two bad faith attempts later... To describe the procedural history of this...more
On Groundhog Day 2017, the Washington Supreme Court issued its first major opinion interpreting the state’s 2007 “Insurance Fair Conduct Act” (IFCA). The decade-old legislation had caused shockwaves among insurers when its...more
Toney v. State Farm Lloyds, Case No. 14-40914, 2016 WL 4784012 (5th Cir. Sept. 13, 2016). After a March 2012 hail storm damaged his home in Mission, Texas, Kenneth Toney (“Toney”) filed a claim with State Farm Lloyds...more
Virtually all property insurance policies contain an appraisal clause, which outlines the appraisal procedure in broad terms. Those broad terms sometimes do not provide much guidance about the process, or about the effect...more
When discussing bad faith in the third party context, most of the discussion properly centers on the duty to settle a claim. However, other actions taken by a policyholder and carrier can have an impact. The recent case of...more
An issue that often arises in the context of property insurance is whether a carrier’s delay in adjusting a claim can create a basis for a viable bad faith claim. The law in each state is different and the prudent practice...more
Eighth Circuit: No Bad Faith Where Insured Failed to Make a Sufficient Demand and Insurer Refused to Entertain Settlement Offer Prior to Completing Investigation - Purscell v. Tico Ins. Co., No. 13-2362, 2015 WL 3855253...more
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...more
In This Issue: - Southern District of New York: It is Unlawful for an Insurer to Withhold Payment When Some Portion on an Insured’s Entitlement is Undisputed - Eastern District of Pennsylvania: State Farm...more
Currie v. State Farm Fire & Cas. Co., No. CIV.A. 13-6713, 2014 WL 4081051 (E.D. Pa. Aug. 19, 2014). After Superstorm Sandy damaged the insureds’ house, they and their insurer came to markedly different assessments of...more
In Falcon v. State Farm Lloyds, the Western District of Texas reminded litigants that licensed public adjusters are not immune from expert witness qualification requirements. Namely, a public adjuster’s license does not...more