Category archive: North Carolina

No Bad Faith for the Denial of Uncovered Losses

Summary: The insured’s assignee argued Occidental Fire & Casualty Company of North Carolina breached the covenant of good faith and fair dealing by refusing to defend and indemnify the insured against a claim regarding faulty construction of shower walls in a hotel. The District Court for Arizona found because the insurer did not defend the…

The Duty of Good Faith Runs Only to Insureds in Maine–Not Adversaries

Summary:  The Maine Supreme Court in Linscott clarified to whom insurers owe duties. Because a plaintiff who brings suit against the insured is an adversary of the insurer defending the case, the insurer is entitled to use negotiating tactics commonly used by lawyers. Linscott v. State Farm Mutual Auto Insurance Company Plaintiff Mervin Linscott, a…

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