In the bad faith decision of
Doherty v. Allstate Indem. Co., No.
15-05165 (E.D. Pa. April 6, 2017 Pappert, J.), the court granted the carrier
summary judgment in a claim arising out of allegations of poor investigation
and claims handling by the carrier.
The case arose out of a landlord
property insurance policy issued to an insured who owned multiple rental
properties leased out to college students.
In a lengthy Opinion in which the
court summarized the current status of bad faith law concerning investigation
and claims handling claims, the court granted summary judgment finding that
there existed no clear and convincing evidence that the insurer acted in bad
faith.
Rather, the court found that the
record made clear that the carrier’s delays were instead attributable to
mistakes and possible confusion on the claim, along with, in part, the insured’s obfuscation
and refusal to cooperate with the claims representative in the investigation
into the claims presented.
The court otherwise opined that
the record revealed that the carrier conducted adequate investigation and had a
reasonable basis for denying any coverage.
The court noted that any delays on the part of the insurer were
attributable, in part, to the insured’s repeated failure to provide information necessary
to open a claim.
Anyone wishing to review this decision may click this
LINK.
I send thanks to Attorney Lee
Applebaum of the Philadelphia law firm of Fineman, Krekstein & Harris. Attorney Applebaum is the creator and writer
of the Pennsylvania and New Jersey Insurance Bad Faith Case Law blog.