Insurance Bad Faith Claim Allowed to Proceed

In the case of Moravia Motorcycle, Inc. v. Allstate Insurance Company, No. 2:21-CV-01274-PLD (W.D. Pa. July 24, 2023 Dodge, M.J.), a federal magistrate judge dismissed a Defendant insurance company’s Motion to Dismiss Plaintiffs’ Breach of Contract and Bad Faith Action over a denial of coverage for water damage to a motorhome.

The court found that the carrier failed to show that the loss was excluded under the policy. 

The carrier also did not demonstrate that there were undisputed facts that would preclude the Plaintiff from proceeding on the bad faith claim asserted. Rather, the Plaintiff argued that the carrier’s handling of the claim was less than complete and was, to some extent, unreasonably delayed.

The court additionally noted that the Plaintiff faulted the carrier for allegedly failing to advise the Plaintiffs, in writing, of the denial of the claim. It was also noted that the carrier allegedly did not provide the Plaintiff with the reasons for the denial.

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


Source: “Digest of Recent Opinions.” Pennsylvania Law Weekly (Aug. 10, 2023).

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