Tuesday, May 7, 2013

Eastern District Federal Court Dismisses UIM Bad Faith Claim

In a recent memorandum Opinion, the Eastern District Federal Court of Pennsylvania in Clark v. Progressive Advanced Insurance Company, No. 12-6174 (E.D. Pa. April 26, 2013 Ludwig, J.) dismissed a bad faith claim in an underinsured (UIM) motorists case.

This case involved a bad faith claim filed under Section 8371 of the Pennsylvania Judicial Code and was essentially based upon the Plaintiff's claim of an inadequate offer by the insurance company in a UIM case.  There were $300,000 in UIM limits available and Progressive made a settlement offer of $18,578.00.

After reviewing the record before it, the court determined that the facts pled were not sufficient to support a bad faith claim in this context.  Accordingly, the claim was dismissed without prejudice.

Anyone wishing to review this Opinion in Clark v. Progressive may click this LINK.


I send thanks to Attorney Scott Cooper of the Harrisburg, PA law firm of Schmidt Kramer and Attorney Paul Oven of the Moosic, PA law firm of Dougherty, Leventhal & Price for bringing this case to my attention.

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