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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 9, 2017

Tennessee Fire Loss Victim’s Statutory Bad Faith Penalty Appropriately Awarded

Brandi Burge’s mobile home and all of its contents were destroyed by fire in July 2013 while insured by Farmers Mutual of Tennessee. Farmers Mutual paid an advance in August 2013, but denied the claim without disclosing why. Suit was filed one year later. After 10 months of discovery Farmers Mutual declared (in discovery responses) the policy void ab initio because Plaintiffs failed to disclose “multiple mortgages on the property.” At a bench trial three years after the fire, the trial court entered judgment for Plaintiffs for damage to the mobile home, loss of personal property, additional living expenses, and a statutory bad faith penalty of 15 percent. On appeal the judgment was affirmed, but modified to increase the award on the mobile home and to add post-judgment interest.

Bad Faith Blog
July 15, 2014

Mental Anguish, Emotional Distress, and Punitive Damages Denied, But a Second Chance at Contract Damages Allowed

Summary: Hurricane Katrina damaged the Hoover’s house and cabana. The usual question was whether the damage resulted from a covered wind loss or an excluded storm surge. The trial court’s directed verdict on part of the contract damages was reversed, but the directed verdicts disallowing the mental anguish, emotional distress, and punitive damages claims were affirmed. In addition, the plaintiffs’ expert’s roof structure testimony was allowed under Mississippi’s Daubert standard.