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Mealey's Insurance Bad Faith

  • March 28, 2025

    5th Circuit Affirms Ruling In Insurer’s Favor In Bad Faith Suit Over Storm Damage

    NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals affirmed a lower court’s judgment in favor of an insurer in a Texas insured’s bad faith lawsuit arising from a coverage dispute over wind and hail property damage, finding that the insured fully recovered its entitled-to insurance benefits and failed to present evidence that supports an independent injury caused by the insurer’s purported violations of the Texas Insurance Code.

  • March 27, 2025

    Panel Says Breach Of Contract, Bad Faith Claims Against Property Insurer Fail

    NEW ORLEANS — A Texas federal judge properly granted summary judgment on breach of contract and bad faith claims in favor of a property insurer because the insured failed to present any facts that would allow a fact finder to conclude that the losses were caused by a covered peril, the Fifth Circuit U.S. Court of Appeals said.

  • March 26, 2025

    5th Circuit Affirms Ruling In Insurer’s Favor In Winter Storm Uri Coverage Dispute

    NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals concluded that because insureds have recovered their insurance policy benefits in full through the insurer’s payment of the appraisal award and statutory interest, they cannot recover bad faith damages in their lawsuit arising from damage caused by winter storm Uri.

  • March 25, 2025

    Deal Report Garners Stay In Former Surgeon’s Suit For LTD Benefits

    TYLER, Texas — Saying in a March 24 notice that they “are working on finalizing” an unspecified settlement, the parties in a former surgeon’s suit for long-term disability (LTD) benefits and relief for alleged mishandling of her claim successfully asked a Texas federal court to stay all deadlines in the case for 60 days.

  • March 24, 2025

    Judge Overrules Objections, Denies Dismissal In Former Surgeon’s Disability Case

    TYLER, Texas — Saying that a disability insurer’s objections “are without merit,” a Texas federal judge on March 21 overruled them and adopted a report and recommendation in a suit where a former surgeon seeks long-term disability (LTD) benefits and relief for alleged mishandling of her claim, thereby denying a dismissal motion.

  • March 24, 2025

    Nevada Federal Judge Says Bad Faith Claims Fail To Allege Sufficient Facts

    LAS VEGAS — A Nevada federal judge dismissed an insured’s bad faith claims against an auto insurer after determining that the insured failed to allege sufficient facts in support of the claims, however, the judge said the dismissal is without prejudice, allowing the insured to file an amended complaint to attempt to correct the deficiencies.

  • March 24, 2025

    District Court Properly Found Employee’s Bad Faith Claim Cannot Proceed, Panel Says

    CHICAGO — A district court properly granted a commercial liability insurer’s motion for judgment on the pleadings because the insurer was not vested with the discretion to investigate and settle the insured employee’s claim, the Seventh Circuit U.S. Court of Appeals said.

  • March 21, 2025

    Auto Insurer’s Failure To Settle Was Not Unreasonable, Panel Majority Says

    PASADENA, Calif. — The majority of the Ninth Circuit U.S. Court of Appeals on March 20 affirmed a district court’s summary judgment ruling in favor of an auto insurer after determining that the auto insurer did not act in bad faith in failing to settle a claim on behalf of its insured because the third-party claimant failed to turn over his medical records despite numerous requests from the auto insurer.

  • March 20, 2025

    Insureds’ Failure To Provide Proof Of Loss Forms Relieves Insurer Of Coverage Duty

    NEW YORK — A property insurer does not owe coverage to its insureds for a missing boat dock because the insureds’ failure to provide requested proof of loss forms within 60 days of receiving the request from the insurer constitutes a violation of the insurance policy’s terms and relieves the insurer of its duty to pay the insureds’ claim, the Second Circuit U.S. Court of Appeals said March 19 in affirming a district court’s ruling on the insureds’ breach of contract and bad faith claims.

  • March 20, 2025

    Split Louisiana Panel Affirms Order To Pay $50,000 To Life Policy Beneficiary

    GRETNA, La. — A split Louisiana appellate court panel on March 19 affirmed in part a lower court order requiring a life insurer to pay a policy beneficiary $50,000, the face value of a life insurance policy, finding that the lower court did not err in its determination that the insurer failed to show that the decedent “made material misrepresentations with an intent to deceive” in the policy application.

  • March 18, 2025

    Insurer Seeks Take-Nothing Judgment After Jury Awards Insured $39.9M In Storm Suit

    TYLER, Texas — A commercial property insurer moved for full judgment as a matter of law and alternatively a new trial after a jury in a Texas federal court unanimously awarded its insured $4,838,747 in damages for its breach of contract and $35 million in exemplary damages for its breach of the duty of good faith and fair dealing in a coverage dispute arising from property damage that was caused by an April 12, 2020, wind and hailstorm.

  • March 17, 2025

    6th Circuit Asked To Rehear No Coverage Ruling In Professional Liability Dispute

    CINCINNATI — An appellant filed a petition for panel rehearing and rehearing en banc asking the Sixth Circuit U.S. Court of Appeals to reconsider its finding that her declaratory judgment and bad faith claims fail because she did not provide a professional liability insurer with “all reasonably obtainable information” about her potential negligence claim against a dentist insured, arguing that the panel opinion misapplied insurance law, failed to hold the insurer accountable “for its shifting justifications” and created “an insurmountable burden for third parties attempting to report claims.”

  • March 17, 2025

    Mississippi Federal Judge Dismisses Extracontractual Claims Against Auto Insurer

    JACKSON, Miss. — An insured’s bad faith claims against an auto insurer cannot proceed because the auto insurer offered evidence that the only dispute at issue between the insured and the insurer was a dispute over the amount owed for the insured’s underinsured motorist (UIM) claim, a Mississippi federal judge said in granting the auto insurer’s unopposed motion for summary judgment.

  • March 13, 2025

    Judge: N.Y. Law Governs Insured’s Coverage Suit Arising From Hurricane Ida Damage

    NEW YORK — A federal judge in New York concluded that under the state’s choice-of-law rules, a property insurance policy’s choice-of-law clause is valid and, as a result, New York law governs an insured’s declaratory judgment, breach of contract and bad faith lawsuit seeking coverage for property damage to its Louisiana restaurant and warehouse that was caused by Hurricane Ida.

  • March 12, 2025

    Judge Withdraws Earlier Ruling In Policy Row Over Criminal History Information

    HOUSTON — A Texas federal judge on March 12 withdrew a ruling issued nine days earlier that denied summary judgment to a life insurance policy beneficiary in her suit against the insurer for its failure to pay benefits under the policy, finding that failure to withdraw the earlier ruling was in error because after the insurer filed its amended answer, the judge issued a March 6 ruling that also denied summary judgment to the insured.

  • March 11, 2025

    Insured Says Reimbursement Owed For Underlying Water Contamination Complaints

    LOS ANGELES — An insured company filed suit in California federal court against its general liability insurer, claiming that the insurer’s refusal to defend it or reimburse it for costs incurred in defending itself against two water contamination suits was a breach of contract and a breach of the implied covenant of good faith and fair dealing.

  • March 11, 2025

    Bad Faith Claim To Proceed; Insureds Have Shown Special Relationship Exists

    OKLAHOMA CITY — A breach of contract claim against two insurers cannot stand because the insureds failed to prove that the insurers are parties to the homeowners insurance policy; however, a bad faith claim against the two insurers can proceed because the insureds allege sufficient facts to show that a special relationship exists between the insurers and the insureds, an Oklahoma federal judge said in partially granting the insurers’ motion to dismiss.

  • March 11, 2025

    Trial Court Properly Found Insurer Was Prevailing Party In Water Damage Suit

    FRANKFORT, Ky. — A trial court did not err in determining that a homeowners insurer was the prevailing party in a water damage coverage dispute because the insureds agreed to dismiss their breach of contract claim prior to trial and the insureds failed to prove their claims for bad faith and violation of the Kentucky Consumer Protection Act (KCPA), the Kentucky Court of Appeals said.

  • March 10, 2025

    Magistrate Dismisses Bad Faith Suit Over Hurricane Irma Damage After Parties Settle

    FORT MYERS, Fla. — A federal magistrate judge in Florida signed an order of dismissal one day after a condominium insured voluntary dismissed with prejudice its bad faith lawsuit seeking coverage for property damage caused by Hurricane Irma.

  • March 06, 2025

    Magistrate Recommends Denying Dismissal Bid In Former Surgeon’s Disability Case

    TYLER, Texas — Concluding that several issues raised could not properly be resolved at this stage, a Texas federal magistrate judge recommended denial of a dismissal motion in a suit where a former surgeon seeks long-term disability (LTD) benefits and relief for alleged mishandling of her claim.

  • March 05, 2025

    Judgment Denied To Life Policy Beneficiary Over No Incarceration Disclosure

    HOUSTON — A Texas federal judge denied a life insurance policy beneficiary’s motion for summary judgment in her breach of contract suit against an insurer for its failure to pay benefits under the policy, finding that the insurer is entitled to cancel the policy due to the beneficiary’s failure to accurately represent the insured’s criminal history in the policy application.

  • March 04, 2025

    Furniture Delivery Company Asks 9th Circuit To Rehear UCL Coverage Dispute

    PASADENA, Calif. — A furniture delivery company insured has asked the Ninth Circuit U.S. Court of Appeals to reconsider its ruling that an insurer has no duty to defend it against an underlying misappropriation of trade secrets and unfair competition lawsuit brought by a competitor, challenging the appeal court’s affirmation of a lower federal court’s grant of the insurer’s motion for summary judgment in its breach of contract and bad faith lawsuit.

  • March 04, 2025

    6th Circuit Affirms Ruling In Favor Of Dentist’s Professional Liability Insurer

    CINCINNATI — The Sixth Circuit U.S. Court of Appeals held that because an appellant did not provide a professional liability insurer with “all reasonably obtainable information” about her potential negligence claim against a dentist insured, the insurer had no contractual duty to the insured and, as a result, the appellant’s bad faith claim fails.

  • March 04, 2025

    COMMENTARY: Sustainability Recalibration: What Insurers And Policyholders Should Know About ESG (Environmental, Social, and Governance Considerations) Under Trump 2.0, Part 1

    By Scott M. Seaman

  • March 03, 2025

    Bad Faith Claim Fails Based On Waiver Of UM/UIM Coverage, Judge Says

    LAFAYETTE, La. — A bad faith claim against an employer’s auto insurer cannot proceed because no uninsured motorist (UM) coverage is owed to the employee based on the employer’s waiver of uninsured/underinsured motorist (UM/UIM) coverage, a Louisiana federal judge said in granting the auto insurer’s motion for summary judgment.