Nationwide moved for the dismissal on the ground that the Plaintiff could not rely upon litigation conduct as the basis for an insurance bad faith claim under Pennsylvania law. Nationwide also asserted that the Plaintiff had not sufficiently plead the elements of an unfair trade practices and consumer protection law claim.
In her decision, Judge Fisher noted that the case before her appeared to present an issue of first impression with respect to litigation conduct in the context insurance bad faith allegations.
After a review of the matter before her along with the relevant legal authority in Pennsylvania and other jurisdictions, the court granted the carrier’s Motion to Dismiss. In so ruling, Judge Fisher concluded that Pennsylvania would likely adopt an approach where there could only be bad faith litigation conduct “in rare cases involving extraordinary facts.”