Business Lawyers Philadelphia: Insurance Bad Faith Claims

Insurance Bad Faith Claims May Survive Even Where No Coverage is Due

In Citi Gas Convenience v. Utica Mutual Insurance Co., the Eastern District of Pennsylvania ruled that a party can bring a bad faith claim even where a court may find no coverage is due if “bad faith is asserted as to conduct beyond a denial of coverage, the bad faith claim is actionable as to the conduct regardless of whether the contract claim survives.”

For example, an insurer may conduct bad faith in its investigation practices, even if ultimately the Court rules that a party is not entitled to coverage. However, the Plaintiff in Citi Gas Conveniencefailed to adequately plead such a claim, and it was dismissed without prejudice.

For more information, call Philadelphia business lawyers at Sidkoff, Pincus & Green at 215-574-0600 or contact us online.