Bad Faith Blog

Plaintiff sued Liberty Mutual for breach of contract and breach of the duty of good faith and fair dealing when Liberty Mutual refused to pay medical expenses incurred for transfer to a trauma center. Liberty Mutual claimed the transfer and extra costs were unnecessary. The trial court granted Liberty Mutual summary judgment finding as a matter of law that a denial based upon unnecessary medical expenses was not bad faith. The Oklahoma Supreme Court disagreed, reversed, and remanded, finding that whether Liberty Mutual acted in bad faith was a question for the jury.

Summary: The Netherlands Insurance Company provided insurance coverage to three corporate entities for which David Edens was the Chief Executive Officer. David and Rhonda Edens were the parents of Zachery who was a motorcyclist killed when an oncoming car turned into his path. The Oklahoma U.S. District Court found there was no UIM/UM coverage, found there could be no bad faith claim prosecuted in the absence of coverage, and entered summary judgment in favor of The Netherlands Insurance Company. The 10th Circuit affirmed on appeal.

Summary: Hollie Bryant, a minor, and her father filed a breach of contract and bad faith case against Sagamore Insurance Company after she was involved in an auto accident. Sagamore denied coverage on grounds of failure to cooperate and because Hollie was not an insured. After filing a motion for summary judgment Sagamore made an unapportioned offer of judgment for $5,000 under the Oklahoma Offer of Judgment statute. The Bryants sought clarification, but allowed the offer to expire without responding. The district court granted summary judgment in favor of Sagamore which then moved for attorney’s fees and costs incurred after the date of its offer of judgment, which resulted in an award of roughly $79,000. The Bryants unsuccessfully argued in the trial court and on appeal that the offer of judgment was invalid because it was not apportioned.