"Low Ball Offer" Bad Faith Claim Dismissed

In the case of Moran v. USAA, No. 3:18-cv-2085 (M.D. Pa. Feb. 14, 2019 Caputo, J.), the court dismissed a Plaintiff’s bad faith claim without prejudice and leave to amend to correct certain issues with the Complaint.  

In Moran, the court noted that the only additions previously added to an original Complaint were facts that possibly supported the Plaintiff’s evaluation of the claims presented, but the court noted that no new facts were added as to why the carrier’s settlement offer was allegedly unreasonable or any new facts to show how the carrier knew or recklessness disregarded the fact that its offer was unreasonable. 

Rather, the court noted that the additional facts added to the Amended Complaint by the Plaintiff did not allow anything other than a possible finding of a negligent valuation, which did not support a claim for bad faith.  

Judge Caputo ruled that insurance bad faith cannot arise solely from discrepancies or disagreements with regards to the evaluation of a case presented.  

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

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

I also send thanks as well as to Attorney Lee Applebaum, of the Philadelphia law firm of Fineman, Krekstein & Harris as well as from the Pennsylvania and New Jersey Insurance Bad Faith Case Law blog.