Another Court Says No Bad Faith Where No Underlying Coverage Under Policy

In the case of Campbell v. State Farm Fire & Cas. Co., No. 2:18-cv-00292 (W.D. Pa. July 18, 2018 Hornak, J.), the court granted a carrier’s Motion to Dismiss a lawsuit filed against the carrier for breach of contract for failing to pay for fire damage to the Plaintiff’s home and for bad faith related to an alleged denial of the claim for coverage without a legal basis to do so.  

The court ruled that the Plaintiff had failed to state a valid cause of action with regards to the breach of contract claim and the coverage issues presented in this fire loss case.  More specifically, the court found that the premises in question did not meet the policy definition of residential premises so as to entitle the insured to coverage under the policy.  

The court noted that, in light of the dismissal of the breach of contract claim after the finding of no coverage under the policy, the Plaintiff’s bad faith claim could not survive in the absence of any coverage under the policy.  As such, Plaintiff’s Complaint as dismissed with prejudice in its entirety.

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

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

Click HERE to check out Attorney Applebaum's bad faith case law Blog.