Western Federal District Court Declines to Sever and Stay Bad Faith Claim in Post-Koken Matter

In a recent decision in the Federal Western District Court case of Schutte v. GEICO, No. 2:16-CV-00374 (W.D.Pa. May 24, 2016 Schwab, J.), the court denied a UIM carrier's motion to sever and stay a bad faith claim asserted in a Post-Koken matter.

In response to the arguments by the carrier citing state court decisions quoting that bad faith claims should be bifurcated, the federal court stated that “to the extent that the state court’s administration of bad faith claims is more advantageous to Defendant,” perhaps the Defendant should have kept the case in state court rather than removed it to federal court.  

I send thanks to Attorney Joseph Hudock of the Pittsburgh law firm of Summers McDonnell for bringing this case to my attention.   

Anyone wishing to review the court's decision in Schutte may click this LINK,