A policyholder’s tort claim for the bad faith refusal to pay a claim was dismissed as a matter of law where a legitimate dispute existed as to coverage liability at the time of the coverage decision by the U.S. District Court for the Northern District of Alabama, Southern Division. See Alabama Gas Corporation v. Travelers Casualty and Surety Company, et al., Case No. 2:10-CV-01840-IPJ, Document No. 214, June 25, 2013. Although forty-four (44) states previously decided that a Potentially Responsible Party Notice from the EPA constitutes a “suit” that triggers an insurer’s obligations under a liability policy, the insurer here denied the claim contesting that a PRP notice was not a “suit.” At the time of the denial, Alabama courts…
