FEBRUARY 2016 BAD FAITH CASES: INSUREDS ADEQUATELY PLEADED BAD FAITH UNDER TWOMBLY/IQBAL STANDARDS (Philadelphia Federal)

In Kelly v. Progressive Advance Insurance Company, the insurer sought to dismiss plaintiffs’ bad faith claims under the Twombly/Iqbal pleading standards.

The insureds were injured by a drunk driver and sought underinsured motorist coverage from their own carrier.  They alleged bad faith for improperly denying coverage, failure to make a reasonable settlement offer, failure to investigate the claims properly and disregarding documentation, including medical records.  The court found the pleading sufficient, and denied the motion to dismiss.

Date of Decision:  February 4, 2016

Kelly v. Progressive Advanced Ins. Co., 2016 U.S. Dist. LEXIS 13324 (E.D. Pa. Feb. 4, 2016) (Savage, J.)