AUGUST 2015 BAD FAITH CASES: THIRD CIRCUIT UPHOLDS APPLICATION OF TWO YEAR STATUTE OF LIMITATIONS RUNNING FROM TIME OF DENIAL OF BENEFITS TO BAR BAD FAITH CLAIM (Third Circuit)

In Leporace v. New York Life & Annuity, the Third Circuit upheld the District Court’s opinion that the two year bad faith statute of limitations had run from the time of benefits being denied; and affirmed dismissal of that claim.  It further affirmed the applicability of the four year contractual statute of limitations in this disability case, distinguishing its prior opinion in Hofkin v. Provident Life & Accident Insurance Co., 81 F.3d 365 (3d Cir. 1996), as the District Court had done.

Date of Decision: August 10, 2015

Leporace v. New York Life & Annuity, No. 14-3821, 2015 U.S. App. LEXIS 13970 (3d Cir.  August 10, 2015) (Smith, Greenaway, Shwartz, JJ.)