Bad Faith Claim Dismissed After Court Finds that Coverage Was Excluded Under the Policy

In the case of Cushman & Wakefield of Pa., LLC v. Illinois Nat’l Ins. Program, Oct. Term 2019, No. 885 (C.P. Phila. Co. Oct. 19, 2022 Djerassi, J.), the court granted a Defendant insurance company’s Motion to Dismiss claims for breach of contract and statutory bad faith stemming from the Defendant’s refusal to indemnify Plaintiff’s litigation cost in an action for fraudulent misrepresentation.

Although the Plaintiff argued that the Defendant insurance company had a duty to indemnify the Plaintiff under the policy, the trial court in this matter disagreed and held that the language of the insured’s policy specifically excluded coverage for matters arising out of a Plaintiff’s fraudulent conduct.

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Source: “Digest of Recent Opinions.” Pennsylvania Law Weekly (Dec. 27, 2022).