January 2017 Bad Faith Cases: There Can Be No Bad Faith Where There is No Coverage Due (Western District)

The court found “’there can be no bad-faith claim [for denial of coverage] if the insurer was correct as a matter of law in denying coverage.’” It relied on the oft-cited 1999 Third Circuit opinion in Frog, Switch & Mfg. Co. v . Travelers. As the court had earlier found there was no viable breach of insurance contract claim, there could be no bad faith claim.

The court also addressed a putative failure to adequately investigate the claim. The insurer adduced various steps it had taken; and the insured alleged problems in investigation, but without providing evidence to resist a summary judgment motion.

Summary judgment was granted on all counts to the carrier.

Date of Decision: January 10, 2017

Wehrenberg v. Metro. Prop. & Cas. Ins. Co., No. 14-1477, 2017 U.S. Dist. LEXIS 3242 (W.D. Pa. Jan. 10, 2017) (Hornak, J.)