Skip to Content

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 29, 2017

Insureds Did Not Establish Consequential Damages to Support Claim for Breach of the Implied Covenant of Good Faith and Fair Dealing

The Tenth Circuit Court of Appeals affirmed the trial court’s grant of summary judgment in favor of the insurer, USAA, finding the insureds failed to establish damages to support their claim for breach of the implied covenant of good faith and fair dealing. Specifically, the court found the insureds failed to establish unusual emotional distress, recoverable attorneys’ fees, or recoverable diminution in value damages that could independently support the claim.

Bad Faith Blog
December 18, 2016

Fairly Debatable Policy Term Precluded Bad Faith Liability

Summary: A homeowner’s insurer brought an action against the insured for declaratory judgment that liability coverage was barred by an exclusion for bodily injury resulting from use of a “jet ski.” The insured counterclaimed alleging bad faith. The trial court found for the insurer on the bad faith claim after a first appeal found coverage was owed. The court held on the appeal of the bad faith ruling that the meaning of “jet ski” was ambiguous and fairly debatable, barring the bad faith action.

Bad Faith Blog
December 9, 2015

Third Party Bad Faith Claims Not Foreclosed in Utah by Paying an Excess Judgment

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.