The nation’s premier blog focused exclusively on claims of bad faith and extra contractual damages, the Bad Faith Blog discusses current issues and highlights best practices in an increasingly complex area of law.

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UPDATE: Proper Brandt Fees Usage to Calculate Punitive Damages in California Bad Faith Cases

Our post regarding the Supreme Court of California’s June 2016 ruling appeared in September. The Supreme Court reversed and remanded to the Court of Appeal which ruled on November 3, 2016. Nickerson v. Stonebridge Life Insurance Co. The Court of Appeal, consistent with the Supreme Court’s ruling, included the stipulated $12,500 Brandt fees in the…

Pennsylvania Bad Faith Claim Subsumed Within Breach of Contract Claim

Summary: Dismissal of the mortgagor’s claim for breach of the implied covenant of good faith and fair dealing was affirmed on appeal. Under Pennsylvania law, there is no cognizable claim for breach of the implied covenant of good faith and fair dealing separate from a breach of contract claim. Davis v. Wells Fargo On January…

Washington Jury Verdict Finding Title Insurer Did Not Act in Bad Faith Affirmed

Summary: Plaintiff sued title insurer upon learning of burdensome recorded easement after purchase of property. Plaintiff sought recovery for breach of contract as well as under the Consumer Protection Act, The Insurance Fair Conduct Act, negligence, and breach of the duty of good faith. Prior to filing suit, Plaintiff sought $125,000 based on diminution in…

Colorado Medical Marijuana Facility Gets Burgled, Smoked & Mixed Bad Faith Results

Summary: Green Earth, the operator of a Colorado Springs retail medical marijuana business and growing facility submitted a claim to its insurer for a wildfire-caused smoke and ash damage and a separate break in and theft. Atain denied the claims on multiple grounds which caused Green Earth to sue Atain for breach of contract and…

Insurer Required to Defend California Unfair Business Practices Suit

Summary: Landy Insurance Agency is a broker selling insurance to real estate professionals. Landy purchased a professional liability insurance policy from Utica Mutual Insurance Company. Utica Mut. Ins. Co. v. Herbert H. Landy Ins. Agency, Inc. Landy’s  targeted market included California. In California Landy sold policies from surplus insurers. One of Landy’s competitors in the…

Enforceable Vertical Exhaustion Clauses Effectively Barred Bad Faith Claim in Uninsured Motorist Claims in Georgia

Summary: Gary Coker was injured in a car accident after a vehicle driven by Donald Woodall crossed the center line and hit Coker head-on. Coker was driving a vehicle owned by his employer, Ansco & Associates. After filing suit against Woodall, Coker obtained a $5.5 million consent judgment. However, Woodall’s automotive insurance policy provided limits…

First-Party Bad Faith Claim Precluded Where Insurer Does not Breach Contract

Summary: Insured’s property was destroyed by fire. Homeowner’s insurer denied claim based on nonrenewal of policy prior to fire loss. Mortgagee institutes foreclosure action against insured, who filed third-party action against insurer for breach of contract, bad faith refusal to pay claim, and indemnity and contribution, claiming attempt to non-renew did not comply with South…

Insured Breached Umbrella Policy’s Cooperation Clause by Entering Miller-Shugart Consent Judgment

Summary: After an evening of under-age drinking, Jacob Patton drove his father’s minivan while his friend, John Donaldson, rode in the passenger seat. When Jacob saw the sirens from a police car, he panicked and attempted to flee. After a short chase, Jacob lost control of the van and crashed into a tree. Donaldson was…

Fact Issues Regarding Insured’s Failure to Cooperate Defeat Bad Faith Summary Judgment

Summary: R & G sued American Family for breach of contract and statutory bad faith penalties after sustaining two separate property damage losses that were both denied under the vacancy exclusion and for R & G’s failure to cooperate in the investigations. On appeal the court found the trial court properly denied the insured’s motions…

Against Public Policy But Not Vexatious and Unreasonable

Summary: The Hadarys were involved in an automobile accident with Carlos Velez, a rental car driver. Both the Hadarys and Velez had automobile insurance at the time of the accident. Velez declined to purchase the supplemental liability insurance offered by Hertz at the time of the rental, and his insurance policy limit was too low…

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The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation.
This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship. © 2014 Sandberg Phoenix & von Gontard P.C. All Rights Reserved.

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