April 2014 Bad Faith Cases: Third Circuit Affirms Application Of Exclusions To Damages Arising From Fluid Release Of Decomposing Body (Third Circuit)

In Certain Underwriters at Lloyd’s London Subscribing to Policy No. SMP3791 v. Creagh, the District Court found that certain policy exclusions precluded coverage for property damage arising out of fluid release from a decomposing body, which is detailed in this earlier blog entry.  The Third Circuit affirmed on the grounds explained by the District Court in finding no coverage, and readily upheld dismissal of the bad faith counterclaim in a footnote.

Date of Decision:  April 14, 2014

Certain Underwriters at Lloyds v. Creagh, No. 13-3541, 2014 U.S. App. LEXIS 6853 (3d Cir. April 11, 2014) (Hardiman, J.)