DECEMBER 2009 BAD FAITH CASES CLASS STATUS DENIED ON OTHER GROUNDS, BUT COURT WOULD HAVE FOUND PREDOMINANCE STANDARD MET RE BAD FAITH CLAIM OF A COMPANY WIDE PRACTICE (WESTERN DISTRICT)

Smith v. Life Investors Insurance Company of America involved a putative class action against an insurer for bad faith, among other things.  The court denied class action status as the typicality and adequacy elements were not met.  However, in observing that predominance would have gone in Plaintiff’s favor, the court stated: “Moreover, the bad faith alleged in this case relates to a coordinated, companywide decision to change the interpretation of ‘actual charges.'”

Date of Decision:  November 6, 2009

Smith v. Life Investors Ins. Co. of Am., No. 2:07-cv-681, 2009 U.S. Dist. LEXIS 103533 (W.D. Pa. Nov. 6, 2009) (McVerry, J.)