In the case of Eizen Fineberg & McCarthy, P.C. v. Ironshore Specialty Ins. Co., No. 16-2461 (E.D. Pa. Dec. 7, 2016 Slomsky, J.), the court denied a carrier’s Motion to Bifurcate the insured’s bad faith claim from a coverage claim.
The carrier argued that the bad faith claims were dependent
upon a finding of a breach of contract and that it would impose unnecessary
discovery burdens on the parties in a case that could be resolved through a
finding of no coverage (and, therefore, no bad faith).
The court refused to find that the insured’s bad faith was
dependent upon the carrier’s coverage claim.
The court noted that there could be other bases for the claim for bad
faith. The court also noted that
judicial economy would be served by litigating the two (2) claims
Anyone wishing to review this case may click this LINK.
I send thanks to Attorney Lee Applebaum of the law firm of
Fineman Krekstein & Harris and the writer of the Pennsylvania and New
Jersey Insurance Bad Faith Case Law Blog for bringing this case to my