Summary Judgment Granted on Federal Middle District Homeowner's Bad Faith Claim

In what may be one of the first post-Rancosky decisions (but in which Rancosky was not cited), summary judgment was granted on a homeowner's insurance bad faith claim in the Federal Middle District Court case of Davenport v. USAA Casualty Ins. Co., No. 1:16-CV-2378 (M.D.Pa. Oct. 11, 2017 Jones, J.).

The court noted that, although there were disputes between the parties over the coverage benefits available under the policy, the homeowners had not presented any clear and convincing evidence of bad faith.  With respect to the property damage estimates generated by the carrier for the fire losses incurred, the court noted that the courts have not recognized bad faith where an insurer makes a low but reasonable estimate of the insured's losses.

Overall, the court found that the Plaintiffs had not provided clear and convincing evidence that USAA acted in bad faith in the adjustment of the claim.

Anyone wishing to review this decision may click this LINK.

I send thanks to Attorney Brigid Q. Alford of the Harrisburg, PA office of Marshall, Dennehey, Warner, Coleman & Goggin for bringing this case to my attention.