Bad Faith Blog

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.

Summary: Campbell caused a serious automobile accident and was found liable for a judgment in excess of his insurance policy’s limits. Despite the serious risk of an excessive judgment and multiple offers to settle within policy limits, State Farm, Campbell’s insurer, refused to settle the claim. Campbell filed suit against State Farm for bad faith failure to settle, but the trial court granted State Farm’s motion for summary judgment. The Utah Court of Appeals reversed and remanded the case for trial.