Category archive: Kentucky

Kentucky Federal Court Bifurcates Coverage Claims from Claims of Bad Faith

Summary: Dippin’ Dots wanted coverage for spoliation of its ice cream that resulted from a power outage. Travelers denied coverage and Dippin’ Dots sued Travelers for both the $750,000 value of the spoiled ice cream and for bad faith based on Travelers’ handling of this property damage claim. Dippin’ Dots, LLC v. Travelers Property Casualty…

Kentucky High Court Upholds Bad Faith Determination Despite Reservation of Rights Defense and Filing Declaratory Judgment

Summary: James Demetre carried liability insurance on his vacant lot, which was previously a gas station.  Demetre was notified that a family occupying a nearby residence was bringing environmental claims against him stemming from the alleged migration of petroleum from his property. Indiana Insurance Company provided a defense under a reservation of rights, sought declaratory…

Kentucky Would Reject Reverse Bad Faith Sixth Circuit Predicts

Summary:  State Auto sued Hargis contending she intentionally set fire to her house. She counterclaimed with common law and statutory bad faith claims. State Auto thereafter amended its Complaint alleging damages for insurance fraud as well as a common law claim for reverse bad faith. The district court granted Summary Judgment allowing the insurance fraud…

Providing a Defense and Filing a DJ Approved

Summary:  In this bad faith action the issue on appeal was whether the insurer lacked “a reasonable basis in law or fact for denying the claim” which is one of the three elements that a plaintiff must allege to maintain a bad faith claim under Kentucky law. Youth Alive was a charity providing mentoring and…

Kentucky Court Finds Insurer Did Not Commit Bad Faith in Delaying UM Benefit Payment Until Medicare Lien Was Determined

Summary: Claimant brought action against automobile insurer alleging insurer acted in bad faith for delaying payment of his claim for uninsured motorist (UM) benefits until determining the exact amount of the Medicare lien. The appellate court held the insurer did not act in bad faith by waiting to determine the amount of the Medicare lien…


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