UIM Bad Faith Claim Allowed to Proceed; UTPCPL Claim Dismissed

In the case of Wingrove v. Nationwide Prop. & Cas. Ins. Co., No. 2:21-CV-00940 (W.D. Pa. March 28, 2022 Colville, J.), the court found that a Plaintiff adequately pled a UIM bad faith claim regarding claims handling issues and an alleged delay in payment. However, the Court dismissed claims that were brought by the Plaintiff under the Unfair Trade Practices and Consumer Protection Law (UTPCPL) as well as under the Pennsylvania Motor Vehicle Financial Responsibility Law.

According to the Opinion, the insured brought bad faith claims regarding the carrier’s failure to pay UIM benefits and wage loss benefits. The carrier filed a Motion to Dismiss in this federal court matter.

After reviewing the Complaint, the court found that the Complaint described in sufficient detail the facts that described the who, what, where, when, and how questions with regard to alleged bad faith conduct.

More specifically, the court found that the Plaintiff had alleged facts in support of claims of a lack of any investigation or evaluation, alleged repeated failures on the part of the carrier to communicate with the Plaintiff’s counsel despite Plaintiff’s counsel’s attempt to contact the carrier, and also alleged an unexplained delay of seven (7) months between the Plaintiff’s demand and the carrier’s offer. The court found that these allegations were sufficient to allow the bad faith claim to proceed.

The court otherwise dismissed the Plaintiff’s UTPCPL claims after finding that that law did not apply to claims handling, but only to conduct prior to the entry of an insurance agreement. The court noted that the allegations all involved claims handling issues and not the sale of an insurance policy.

The court also agreed that the claims raised by the Plaintiff under 75 Pa. C.S.A. §1716 of the Motor Vehicle Financial Responsibility Law, which addressed first party benefits issues, did not apply to UIM claims. As such, those claims were dismissed as well.

The court otherwise refused to strike references to a fiduciary duty as set forth in the Complaint. In this regard, the court found that the Plaintiff had not specifically asserted any claim for a breach of a fiduciary duty and that there was, therefore, no need for the drastic action of striking allegations sounding in that regard from the case at that early stage of the case.

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


I send thanks to Attorney Lee Applebaum of the Philadelphia law office of Fineman Krekstein and Harris, and also the writer of the Pennsylvania New Jersey Insurance Bad Faith Case Law blog for bringing this case to my attention.  Click HERE to view Lee's Blog.

Case of First Impression: Ambulance Company Owes Fiduciary Duty to Patients it Transports

In Covolus v. Menist, No. 281-CV-2019 (C.P. Monroe Co. May 29, 2019 Williamson, J.), a case of first impression, Judge David J. Williamson of the Monroe County Court of Common Pleas held that a fiduciary duty is owed by a business that provides ambulance services to persons that it transports for care.

According to the Opinion, the Plaintiff was being transported by an ambulance company from one hospital to a psychiatric hospital when he was sexually assaulted by an employee of the company in the back of the ambulance.   

The Plaintiff filed suit against the Defendant for intentional infliction of emotional distress and counts of negligent supervision, failure to prevent harm, and negligent infliction of emotional distress.

The Defendant filed Preliminary Objections asserting that no fiduciary duty existed between the company and the Plaintiff.   The court granted in part and denied in part the Preliminary Objections, thereby allowing the case to proceed.  

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

Source: “Digest of Recent Opinions.” Pennsylvania Law Weekly (June 18, 2019). 

No Fiduciary Duty Owed to Insured By Carrier in UM/UIM Context

In a recent decision in the case of Meyers v. Protective Ins. Co., No. 16-1821 (M.D. Pa. Jan. 27, 2017 Caputo, J.), Judge A. Richard Caputo of the Federal Middle District Court of Pennsylvania struck all references in the Plaintiff’s post-Koken Complaint to allegations of a breach of a fiduciary duty. 

The court ruled that, “Under Pennsylvania law, an insurer owes a duty of good faith and fair dealings toward their insureds.  It is well-established, however, that there is no fiduciary duty owed to an insured in the context of an underinsured/uninsured motorist benefits” claim.  

The court also dismissed the Plaintiff’s bad faith claims.   The court found that the allegations of failure to communicate and ignoring communications were unsupported in the Complaint.   Judge Caputo also noted that there was no evidence to support allegations that the carrier had not fairly and objectively evaluated the claim, or that the settlement offer was so inadequate as to constitute bad faith.   

Judge A. Richard Caputo
M.D. Pa.

Judge Caputo additionally noted that there was no evidence to support an allegation of the carrier’s request for four (4) medical examinations was made in bad faith.

Although the bad faith claims were dismissed, the Plaintiff was granted leave to amend if sufficient supporting facts could be pled.  

Anyone wishing to review this case online, may click this LINK.

I send thanks to Attorney Lee Applebaum of the Philadelphia law firm of Fineman Krekstein & Harris.   Be sure to check out Attorney Applebaum’s Pennsylvania and New Jersey Insurance Bad Faith Case Law Blog HERE.