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Rancosky v. Washington National Insurance Co.: Pennsylvania Supreme Court Finally Rules on Test for Insurance Bad Faith; Holds That Proof of an Insurer's Motive of Self-Interest or Ill Will Is Not Required >
October 6, 2017
By: Richard L. McMonigle, Jr.
In Rancosky v. Washington Nat'l Ins. Co. the Pennsylvania Supreme Court at long last ruled squarely on what must be proven to establish bad faith under 42 Pa. C.S.A. ยง8371, Pennsylvania's "bad faith statute," and, in doing so, held that proof of a motive of self-interest or ill will on the part of the insurer is not required.
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Is an Insurer's Reliance on Unsettled Case Law Enough to Defend Against a Bad Faith Claim? >
July 6, 2017
Insurers are often faced with making coverage decisions where the case law is unsettled. Does reliance on that case law supporting the insurer's decision insulate an insurer from a claim of bad faith? A recent case from the Eastern District of Pennsylvania suggests that the existence of case law to support its position may not alone be enough.
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Bifurcation/Severance of Bad Faith Claims in the Pennsylvania Federal District Courts >
March 24, 2017
The decision in Insurance Federation of Pennsylvania v. Koken, 889 A.2d 550 (Pa. 2005), radically changed the landscape of UM/UIM litigation. Since then, attorneys and courts have struggled with the practicality of litigating cases that include both UM/UIM claims as well as bad faith claims. One of the major issues that has yet to be conclusively resolved is whether a count for entitlement to UM/UIM benefits can proceed simultaneously with a bad faith count. Relatedly, courts continue to consider the implications for the litigation process where bifurcation or severance and stay are denied.
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Changes to New Jersey Rules Governing Civil Practice Affect Litigation of UM/UIM and Bad Faith Claims >
February 13, 2017
New Jersey's Civil Practice Committee has made two significant changes to the Rules Governing the Civil Practice - regarding the entire controversy doctrine and the offer of judgment rules - following the New Jersey Supreme Court's invitation to do so.
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Westport Ins. Co. v. Mylonas: Pennsylvania Court Fashions New Test for Legal Malpractice Claims Under E&O Policies >
August 31, 2016
By: Jeffrey M. Brenner
In Westport Insurance Company v. Mylonas, Judge Slomsky of the United States District Court for the Eastern District of Pennsylvania granted summary judgment in favor of Westport in a declaratory judgment action, declaring that under an errors and omissions (E&O) policy, multiple related acts of negligence amount to a single claim under a legal malpractice policy.
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In the Wake of Superstorm Sandy, Insurance Carriers are Well-Advised to Review New Jersey Insurance Bad Faith Law >
March 12, 2013
By: Richard L. McMonigle, Jr.
Superstorm Sandy's devastating landfall in October 2012 caused property damage and income loss in New Jersey that early estimates suggest will exceed $50 billion. Commercial and personal lines property insurers have been inundated with claims. As some of these claims progress, the term "bad faith" may be hurled by policyholder representatives - public adjusters and attorneys - who may have little familiarity with New Jersey law governing such assertions.
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