Advertising Disclosure Email Disclosure

Statutory bad faith claim could survive dismissal even in the absence of a valid breach of contract claim.

October 1, 2019
Tung Thien Nguyen v. Allstate Ins. Co., No. 18-5019, 2019 U.S. Dist. LEXIS 79822, at *1 (E.D. Pa. May 8, 2019)

The Eastern District reviewed this case involving a homeowner’s policy on a property in Philadelphia. The pro se plaintiff brought claims of breach of contract, statutory bad faith, negligence and unjust enrichment. The insurer moved to dismiss all counts. As to breach of contract, the insurer argued that the suit was barred under the suit limitation clause, which the court agreed with and dismissed accordingly. However, the court denied the request to dismiss statutory bad faith. Certain facts could possibly support a statutory bad faith claim, including: (1) contradictory information given by the insurer’s agents as to the coverage of this policy and how to collect and appeal; and (2) instructing the insured to file multiple claims that caused him to pay multiple deductibles and ultimately discredited his claims as a whole. Given that breach of contract was time barred, however, the court precluded the plaintiff from recovering interest plus 3% on the amount of the alleged insurance claim. The important take away here is that a statutory bad faith claim could survive dismissal even in the absence of a valid breach of contract claim; however, in that situation, a plaintiff is precluded from recovering interest plus 3% on the amount of the alleged insurance claim—the only remedy available to a plaintiff in this situation is punitive damages.

 

Case Law Alerts, 4th Quarter, October 2019

Case Law Alerts is prepared by Marshall Dennehey Warner Coleman & Goggin to provide information on recent developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. Copyright © 2019 Marshall Dennehey Warner Coleman & Goggin, all rights reserved. This article may not be reprinted without the express written permission of our firm.

Affiliated Attorney

Practice Areas

Before you send this email please note:

You are attempting to send email, through a link on our website, to an attorney of Marshall Dennehey Warner Coleman & Goggin or an employee in our firm. Please note that your email may not be treated as confidential and does not create an attorney-client relationship. You should not rely upon the transmission of an email through this website if you are seeking to enter into such a relationship. Until such time as we have agreed to represent you, no information in your email will be treated as confidential. Please contact us directly by telephone at 1.800.220.3308 if it is your intent to seek legal counsel with our firm or convey confidential information.

If it is still your intent to send this email, knowing that it may not be treated as confidential, you may accept our terms of agreement by pressing "OK". If you choose not to accept these terms of agreement you may navigate away from this page by pressing "Cancel."