Mirarchi v. Seneca Specialty Ins., Co., 2014 U.S. App. LEXIS 8015 (3d Cir. 4/29/14) (not precedential)

The insured failed to show insurance bad faith where the insurer had relied upon a genuine and considered estimate of actual cash value by an expert.

This action arose from the insurer’s alleged mishandling of the insured’s property damage claim, following a fire that had destroyed the insured’s property. The court determined that the insured failed to show that the insurer had acted in bad faith in either arriving at its initial estimate or in standing by that estimate until the appraisal process concluded. The insurer had relied upon a genuine and considered estimate of actual cash value by its first expert, and subsequent estimates assigning a higher value to the claim did not constitute clear and convincing evidence of bad faith. The court also held that the district court had not abused its discretion in excluding evidence related to the insurer’s loss reserves because the insured had failed to show the loss reserve figures were relevant to the bad faith claim.

Case Law Alerts, 3rd Quarter, July 2014