Monday, February 6, 2017

Federal Court Reaffirms Rule That There Can Be No Bad Faith For Denial Coverage Where Carrier Correct in Denying Coverage

In the recent Western Federal District Court decision of Wehrenberg v. Metro Prop. & Cas. Ins. Co., No. 14-1477 (W.D. Pa. Jan. 10, 2017 Hornak, J.), the court reaffirmed the rule that “‘there can be no bad-faith claim [for a denial of coverage] if the insurer was correct as a matter of law in denying coverage.’”   Here, where the court had earlier found that there was no viable breach of insurance contract claim, the court agreed that there could be no related bad faith claim.  

The court also rejected the Plaintiff’s arguments that the carrier failed to adequately investigate the claims presented.  

The court granted summary judgment in favor of the carrier.   

A copy of this decision can be viewed online HERE.

I send thanks to Attorney Lee Applebaum, the writer of the Pennsylvania New Jersey Insurance Bad Faith Case Law Blog and member of the Philadelphia law firm of Fineman Krekstein & Harris, for bringing this case to my attention.


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