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.)