A jury found that Mid-Continent committed five separate violations of the Texas Insurance Code and awarded $2 million to the insured as compensation for the amount it paid to settle third-party claims.  The trial court, however, granted Mid-Continent’s motion for …

No Bad Faith Recovery Unless Insured Demonstrates Acts Were A Producing Cause Of Damages Read more »

The United States District Court for the Western District of Texas in Austin recently held that an insurer’s timely payment of an appraisal award bars the insured’s extra-contractual tort claims. Michels v. Safeco Ins. Co. of Indiana, No. 1:12-cv-00511-SS (W.D. …

Prompt Payment of An Appraisal Award Bars Bad Faith Per Austin U.S. District Court, Although Some Acts By An Insurer May Leave The Door Open Per Galveston U.S. District Court Read more »

In Merrill v. State Farm Fire and Cas. Co., 2013 WL 588515 (W.D.Pa., Feb 13, 2013), the U.S. District Court for the Western District of Pennsylvania dismissed the insured’s common law bad faith claim because it was based solely on …

Bad Faith Claims Cannot Be Based Solely On Breach Of Contract And Must Allege More Than Conclusory Allegations Read more »