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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
October 8, 2017

Washington Court of Appeals Finds No Preclusion for Bad Faith Claim After Resolution of UIM Benefits Action

Anastasia Fortson-Kemmerer (“Plaintiff”) sued Allstate Insurance Company (“Allstate”) to recover for bad faith and violation of the Insurance Fair Conduct Act (“IFCA”) for its actions when investigating her underinsured motorist (“UIM”) coverage claim. Allstate moved for summary judgment on the affirmative defense that Plaintiff’s previous action to enforce her UIM policy provisions operated as res judicata and barred her bad faith claim. The trial court granted summary judgment and Plaintiff appealed. The Washington Court of Appeals reversed, stating Allstate failed to demonstrate the operation of res judicata.

Bad Faith Blog
January 13, 2016

A Rhode Island Insurer’s Duties Extend to Their Insureds’ Assignees

Summary: Michelle Asermely rear-ended a vehicle driven by Mark Rendine but owned by Julieanne Bernier. Bernier had car insurance issued by Allstate Insurance Company with a policy limit of $50,000. Asermely’s lawsuit against both Rendine and Bernier went to arbitration where the arbitrator awarded Asermely $47,557.37, but also found her 25 percent at fault. Her attorney wrote a letter to the arbitrator saying that “plaintiff will accept the award of the arbitrator,” but the defendants rejected it and proceeded to trial. A jury entered a total judgment of $86,333.57, which included interest, and found Asermely 60 percent at fault. After trial, Allstate allegedly made a check out to Asermely for the policy limit of $50,000 as “final settlement of any and all claims arising from bodily injury and property damage caused by accident on 7/9/84.” Asermely refused to cash the check and instead sued to collect on the judgment. At that point, Rendine and Bernier assigned their rights to Asermely. Allstate later issued a second check for $50,000 to Asermely, but this time did not include the release language. Asermely cashed the second check, but later sued Allstate.