Thursday, March 26, 2020

Third Circuit Reviews Statute of Limitation Issues in Context of Bad Faith Claim (Not Precedential)


In the case of Finegold v. Brooks, No. 19-1495 [Not Precedential] (3d. Cir. Jan. 24, 2020 Jordan, J., Scirica, J, Rendell, J.) (Op. by Scirica, J.), the Third Circuit Court of Appeals affirmed a trial court’s finding that the two (2) year statute of limitations for bad faith action barred this suit where the alleged bad faith conduct occurred in 2011 and the suit was not filed until 2019.

The Third Circuit rejected the Plaintiff’s argument under the discovery rule as well as the Plaintiff’s argument that there was a continuing breach that restarted the statute of limitations.

In this regard, the Third Circuit noted that, in terms of an alleged continuing breach, under Pennsylvania law, the statute of limitations “runs when the first denial occurs, but continuing or subsequent denials do not newly trigger the statute of limitations.”

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 and of the Philadelphia law firm of Fineman Krekstein and Harris for bringing this case to my attention.

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