Federal Court UIM Bad Faith Claim Dismissed Where Plaintiff Did Not Plead Sufficient Facts

In the case of Hampton v. Progressive Insurance Company, 2:24-CV-01011-MAK (E.D. Pa. May 21, 2024 Kearney, J.), the court granted a Motion to Dismiss a Plaintiff’s bad faith claims and claims under the Pennsylvania Unfair Trade Practices and Consumer Protection Law in a UIM case.

According to the Opinion, the Plaintiff secured the $15,000.00 liability limits from the third party tortfeasor and then pursued this UIM claim.

After the UIM carrier offered $1,000.00 in settlement, the Plaintiff filed a breach of contract action that included claims for statutory bad faith and unfair trade practices claims.

The court ruled that the Plaintiff’s bad faith claim failed where the Plaintiff failed to plead sufficient facts alleging any unreasonable conduct by the carrier or any facts that would support an inference of unreasonableness with respect to the carrier’s settlement offer.

The court otherwise stated that the Plaintiff failed to identify specific actual omissions by the Defendant carrier that were unreasonable or indicative of bad faith. Rather, the Plaintiff only made conclusory allegations that the Defendant’s settlement offer below is UIM policy limits demonstrated bad faith. The court stated that the Plaintiff did not pled any specific facts with regards to how the Defendant carrier evaluated the UIM claim or any facts that would support an inference that the $1,000.00 settlement offer was unreasonable.

Anyone wishing to review a copy of this decision may click this LINK.  The Court's companion Order can be viewed HERE.


Source: Law.com, “The Legal Intelligencer Federal Case Alert” (June 13, 2024).

Source of image:   Photo by Mikhail Nilov on www.pexels.com.