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Bad Faith Blog

We cover current issues, highlights and best practices exclusively on claims of bad faith and extra contractual damages.

Bad Faith Blog
July 8, 2020

Indiana Court of Appeals Finds Legal Malpractice Claims are Not Assignable and Voluntarily Providing a Defense Does Not Create a Duty When No Duty to Defend Existed

The Court of Appeals of Indiana held legal malpractice claims are not assignable and affirmed dismissal of a claim against an insurer for vicarious liability for the alleged negligence of retained defense counsel. The Court additionally held when an insurer does not owe a duty to defend or indemnify, it cannot be held liable for a breach of the duty to defend if it voluntarily and gratuitously provided a defense anyway. 

Bad Faith Blog
August 4, 2016

No Provable Conscious Wrongdoing, No Bad Faith

Summary: Thomas and Allison Missler’s home was destroyed in a fire on June 1, 2011. While the fire department was responding to the fire, the Misslers’ State Farm insurance agent, Theresa Chapman, arrived at the scene. The Misslers had purchased a homeowners insurance policy from State Farm which provided dwelling coverage, personal property coverage and coverage for additional living expenses. After arriving, Chapman contacted Indiana Restoration & Cleaning Services (“IRCS”), a State Farm preferred vendor. The Misslers became dissatisfied with IRCS and State Farm. They then filed suit against both and appealed after State Farm prevailed on its motion for summary judgment. State Farm prevailed on appeal.