In the case of Gerow
v. State Auto Prop. & Cas. Co., No. 3:17-cv-203 (W.D. Pa. Oct. 11, 2018
Gibson, J.), the federal court held that, where there is a findig of no
coverage under a policy, a court is required to enter judgment in favor of the
carrier on the companion bad faith claim.
This matter arose out of a property damage case from a burst
water pipe.
The insurance policy at issue required continued residency
as a condition for the coverage. The
facts confirmed that the insureds were not residing at the property at the time
the water pipe burst.
When the carrier refused to pay based upon the residency
requirement under the policy, the insured sued for breach of contract and bad
faith.
After ruling that there was no breach of the policy, the
court went on to dismiss the Plaintiff’s bad faith claim as well.
Anyone wishing to review a copy of this decision 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 (check it out HERE) and
member of the Philadelphia law firm of Fineman, Krekstein & Harris for
bringing this case to my attention.
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