Pennsylvania Supreme Court Limits Bad Faith Actions
Pennsylvania’s bad faith statute permits claims of first party bad faith in actions “arising under an insurance policy.” Practitioners have debated the scope of this language virtually since the bad faith statute was enacted in 1990. Many insurers have contended that there must first be a claim denial before a policyholder may assert bad faith. Policyholders, on the other hand, have often maintained that a bad faith claim may be appended to any cause of action relating to an insurance policy. A decision in the case of Toy v. Metropolitan Life Ins. Co., Nos. 33 & 34 WAP 2005, 2007 Pa. LEXIS 1463 (Pa. Super. Ct. July 18, 2007), appears to have settled this issue in favor of insurers.
Click on the PDF link above to read the full alert.
The material contained in this communication is informational, general in nature and does not constitute legal advice. The material contained in this communication should not be relied upon or used without consulting a lawyer to consider your specific circumstances. This communication was published on the date specified and may not include any changes in the topics, laws, rules or regulations covered. Receipt of this communication does not establish an attorney-client relationship. In some jurisdictions, this communication may be considered attorney advertising.
Meet the Authors
