Wednesday, October 25, 2017

Motion to Sever and Stay Post-Koken Bad Faith Claim Denied in Middle District of Pennsylvania

In his recent decision in the case of Newhouse v. GEICO, No. 4:17-CV-00477 (M.D. Pa. Sept. 18, 2017 Brann, J.), US Middle District Judge Matthew W. Brann denied GEICO’s Motion to Sever and Stay the bad faith portion of a post-Koken claim filed by a Plaintiff also asserting a UIM claim.  

The court declined to sever or bifurcate the UIM and bad faith claims after finding that the Plaintiff would utilize similar evidence and testimony for both claims.   The court also rejected the carrier’s argument that it would be prejudice by a lack of bifurcation because, relative to the bad faith action, the carrier will have to present information on how it values a claim before the jury assesses liability and damages in the UIM portion of the claim.   

Anyone wishing to review a copy of this decision may click this LINK.

Source:  Article “GEICO Can’t Halt Bad-Faith Claims in UIM Case, Court Says” By: PJ D’Annunizio.   The Legal Intelligencer (September 22, 2017).    

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