Table of Contents. See also Summary of Contents on the previous page.

Transcription

1 Table of Contents See also Summary of Contents on the previous page. Chapter One: 2014 Update on the Law of Insurance Bad Faith... 1 Richard L. McMonigle, Esquire, Steven J. Schildt, Esquire, and Lindsay Andreuzzi, Esquire I. Pennsylvania s Common Law Bad Faith Action... 3 A. History... 3 B. Recent Cases... 6 II. The Bad Faith Statute 42 Pa.C.S.A III. Parties to a Bad Faith Action Under A. Who May Bring a Bad Faith Action B. Who May Be Sued for Bad Faith? IV. The Nature of Scope of a 8371 Action A. Section 8371 as an Independent Cause of Action B. The Scope of Conduct Covered Under C. Continued Debate Over Scope of Common Law Bad Faith Cause of Action V. Defining Bad Faith A. Terletsky v. Prudential Prop. & Cas. Ins. Co., 437 Pa. Super. 108, 649 A.2d 680 (1994) B. Berg v. Nationwide Mut. Ins. Co., Inc PA Super. 88 (Pa. Super. Apr. 17, 2012) C. Klinger v. State Farm Mutual Auto. Ins. Co., 115 F.3d 230 (3d Cir. 1997) D. Greene v. United Services Auto. Ass n., 936 A.2d 1178 (Pa. Super. 2007) E. Smith v. State Farm Mut. Auto. Ins. Co., 506 F. App x 133 (3d Cir. 2012) F. Cacciavillano v. Nationwide Ins. Co. of Am., 2012 U.S. Dist. LEXIS (M.D. Pa. June 13, 2012) VI. Procedural Issues in Bad Faith Actions A. Pleading Bad Faith B. Who Decides if Bad Faith Exists C. Applicable Burden of Proof D. Statute of Limitations E. Bifurcation/Severance xiii

2 VII. Proving Bad Faith A. Alleged Statutory Violations B. Using Experts To Prove Bad Faith VIII. Examples Where Courts Have Found Bad Faith May Exists A. Unreasonable Delay in Handling Claims B. Inadequate Investigation or Legal Research C. Unreasonable Reliance on Independent Experts D. Unreasonable Interpretation or Application of Policy Provisions E. Failure to Make Reasonable Offer of Settlement F. Unreasonable Handling of UM/UIM Claims G. Misrepresentation of Material Facts H. Unreasonable Refusal to Defend Third Party Suit I. Unreasonable Conduct During Litigation? J. Improper Use of Releases? IX. Examples Where Bad Faith Has Been Found Not To Exist A. No Bad Faith Where Insurer Correctly Applies Policy Provisions B. No Bad Faith Where Insurer s Interpretation of Policy, Though Wrong, was Reasonable C. No Bad Faith Where Insurer s Investigation and Claims Decision was Reasonable D. No Bad Faith Where Insurer Reasonably Relies Upon Independent Expert E. No Bad Faith Where Claim Handled in Reasonably Timely Manner F. No Bad Faith Where there Is Reasonable Belief that the Insured Commits Misrepresentation or Fraud G. No Bad Faith Where Insurer Reasonably Handles UM/UIM Case H. No Bad Faith Where Insurer Takes Reasonable Position Regarding Settlement I. Post-Litigation Conduct May Not Constitute Bad Faith J. Insurer s Request for Release of Bad Faith Claim Not Necessarily Bad Faith X. Damages Recoverable: The Issue of Compensatory Damages A. Birth Center v. St. Paul Cos., Inc., 787 A.2d 376 (Pa. 2001) B. Ash v. Continental Ins. Co., 932 A.2d 877 (Pa. 2007) C. Pavlick v. Encompass Indem. Ins. Co U.S. Dist. LEXIS (W.D. Pa. July 14, 2011) D. Shafer v. State Farm Mut. Auto. Ins. Co U.S. Dist. LEXIS (W.D. Pa. Mar. 9, 2012) E. Smalanskas v. Indian Harbor Ins. Co Pa. Dist. & Cnty. Dec. LEXIS 233 (Lackawanna Feb. 15, 2008) F. Schmitt v. State Farm Ins. Co U.S. Dist. LEXIS (W.D. Pa. Apr. 16, 2010) G. Davis v. Fidelity Nat l Ins. No cv-6154, Slip Op., (Lackawanna Aug. 15, 2013) H. Ferguson v. Kemper 2013 U.S. Dist. LEXIS (M.D. Pa. Feb. 15, 2013) xiv

3 I. Getz v. State Farm Ins. Co U.S. Dist. LEXIS (W.D. Pa. Oct. 24, 2012) XI. Recovery of Interest, Attorneys Fees & Costs A. Discussion B. Recent Cases XII. Damages Recoverable: Punitive Damages A. W.V. Realty, Inc. v. Northern Insurance Co. of New York, 334 F.3d 306 (3d Cir. 2003) B. Klinger v. State Farm Mutual Auto. Ins. Co. 215F.3d 230 (3d Cir. 1997) C. Hollock v. Erie Ins. Exchange, 842 A.2d 409 (Pa. Super. 2004) D. BMW of North America, Inc. v. Gore, 517 U.S. 559 (1996) E. State Farm Mut. Life Ins. Co. v. Campbell, 538 U.S. 408 (2003) F. Jurinko v. Medical Protective Co., 2008 U.S. App. LEXIS (3d Cir. Dec. 24, 2008) G. Philip Morris U.S.A. v. Williams, 549 U.S. 346 (2007) H. Davis v. Fidelity Nat l Ins., No cv-6154, Slip Op., (Lackawanna Aug. 15, 2013) I. Smith v. Allstate Ins. Co., 912 F. Supp. 2d 242 (W.D. Pa. 2012) J. Grossi v. Travelers Personal Ins. Co., Beaver County CCP, Civ. Action (2012) XIII. Discovery in Bad Faith Litigation XIV. Application of Section 8371 to Claims Arising Under Motor Vehicle Financial Responsibility Law A. Courts Holding that the MVFRL Provides the Exclusive Remedy under an Auto Policy B. Courts Holding that the MVFRL Does Not Provide the Exclusive Remedy for Bad Faith under an Auto Policy Where Complaint Alleges Abuse of PRO Process XV. Reverse Bad Faith XVI. Additional Issues Under A. ERISA B. Worker s Compensation Act Chapter Two: Three Trials: Some Lessons Learned Carl J. Guagliardo, Esquire, Patricia A. Monahan, Esquire, Kelly M. Tocci, Esquire and Lindsay B. Andreuzzi, Esquire Davis v. Fidelity Nat l Ins., No cv-6154, Slip Op. (Lackawanna, Aug. 15, 2013) (Minora, J.) Practical Suggestions Based Upon Davis v. Fidelity Nat l Ins. by Carl J. Guagliardo, Esquire Rhodes v. USAA Cas. Ins. Co., No GN-2279, PICS Case No (C.P. Blair July 18, 2013) (Brown, S.J.) xv

4 Practice Tips for Defending Delay Claims by Patricia A. Monahan Esquire Grossi v. Travelers Personal Ins. Co., Beaver County CCP, Civ. Action (2012) (Kwidis, J.), affirmed in part, 79 A.3d 1141 (Pa. Super. 2013) Gross v. Travelers: Analysis and Practice Tips by Kelly M. Tocci, Esquire Chapter Three: Procedural and Evidentiary Issues in Bad Faith Actions Robert E. Dapper, Jr., Esquire and Daniel J. Twilla, Esquire Removal Generally Removal Recent Cases Severance, Stay of Discovery, and/or Bifurcation of Trial Federal Court Pleading Bad Faith Statute of Limitations Motions In Limine Chapter Four: Rebutting Claims for Consequential and Punitive Damages Pamela A. Carlos, Esquire Power Point Slides Corner Pocket, Inc. v. Travelers Insurance, Civil Action No (2013 U.S. Dist.) The Babcock & Wilcox Company, et al v. The Babcock & Wilcox Company et. al 2013 PA Super 174; 76 A.3d Chapter Five: Severance and Bifurcation in the UM/UIM Case Richard L. McMonigle, Esquire and Jaclyn D. Levash, Esquire I. Federal Law on Severance/Bifurcation A. FRCP 42(b) II. Pennsylvania State Law on Severance/Bifurcation A. Pa.R.C.P. 213(b) III. Severance to Promote Fairness in the Post-Koken Era xvi

5 IV. Cases Allowing Bifurcation A. USDC Eastern District of Pennsylvania B. USDC Western District of Pennsylvania C. Adams County D. Allegheny County E. Beaver County F. Bucks County G. Butler County H. Cumberland County I. Delaware County J. Erie County K. Forest/Warren Counties (37 Judicial District Combined) L. Lackawanna County M. Lancaster County N. Lebanon County O. Lehigh County P. Mercer County Q. Monroe County R. Montgomery County S. Philadelphia County T. Schuylkill County U. Susquehanna County V. Venango County W. Washington County X. York County V. Cases Not Allowing Bifurcation A. USDC Eastern District of Pennsylvania B. USDC Middle District of Pennsylvania C. USDC Western District of Pennsylvania D. Allegheny County E. Beaver County F. Cambria County G. Clinton County H. Centre County I. Dauphin County J. Erie County K. Lackawanna County L. Lawrence County M. Lehigh County N. Luzerne County O. Monroe County P. Montgomery County Q. Montour County R. Northampton County S. Philadelphia County T. Pike County U. Schuylkill County V. Washington County xvii

6 Chapter Six: Discovery Issues in Pennsylvania Bad Faith Litigation Richard L. McMonigle, Esquire and Lindsay Andreuzzi, Esquire A. Introduction B. Production of the Insurer s Claim File C. Attorney Communications and Work Product D. Requests for Company Claims Manuals and Training Materials E. Requests for Company Underwriting Policies and Guidelines F. Requests for Information Pertaining to Other Claims or Actions Brought Against the Insurer G. Requests for Reserve Information H. Requests for Private Information Concerning Company Employees I. Requests for Insurer Corporate and Financial Information J. Miscellaneous Discovery Topics K. Final Thoughts Chapter Seven: Plaintiff s Discovery in Bad Faith Cases: Samples Submitted by: David S. Senoff, Esquire Discovery in a Commercial Property Bad Faith Case Discovery in an Excess Verdict Bad Faith Case Discovery in a UIM Bad Faith Case Chapter Eight: Expert Evidence in the Bad Faith Case Richard L. McMonigle, Esquire and Bryan M. Shay, Esquire I. Introduction II. Standards for Expert Testimony III. Using Expert Testimony A. Expert Testimony is Not Required in All Bad Faith Cases B. Subjects on Which Expert Testimony May Be Permitted C. Subjects on Which Expert Testimony May Not Be Permitted IV. Conclusion xviii