Tuesday, September 6, 2016

Pennsylvania Supreme Court Agrees to Revisit the Elements of Statutory Bad Faith Claims

Here's a case to keep an eye on if you handle statutory bad faith litigation matters under 42 Pa.C.S.A. Section 8371.

 In the case of Rancosky v. Washington Nat'l Ins. Co., 28 WAP 2016 (Pa. Aug. 30, 2016), the Pennsylvania Supreme Court had granted an appeal on the following issue:

 "Whether this Court should ratify the requirements of Terletsky v. Prudential Property & Casualty Insurance Co., 649 A.2d 680 (Pa. Super. 1994), appeal denied, 659 A.2d 560 (Pa. 1995), for establishing insurer bad faith under 42 Pa.C.S. § 8371, and assuming the answer to be in the affirmative, whether the Superior Court erred in holding that Terletsky factor of a “motive of self-interest or ill-will” is merely a discretionary consideration rather than a mandatory prerequisite to proving bad faith?"

I send thanks to Attorney Lee Applebaum of the Philadelphia law firm of Fineman, Krekstein & Harris and the other writers of the excellent Pennsylvania and New Jersey Insurance Bad Faith Case Law Blog for bringing this decision to my attention.  To view that blog's more detailed analysis of the bad faith question presented above as well as to access a Link to this Supreme Court Order in Rancosky, click this LINK.

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