JUNE 2010 BAD FAITH CASES BAD FAITH IS IMPOSSIBLE WHEN A PARTY HAS NO CONTRACTUAL RELATIONSHIP WITH THE INSURED OR IS NOT AN INSURER IN THE FIRST PLACE (Western District)

In Allegrino v. Conway E & S, Inc., the Western District ruled on motions from a case previously discussed on the blog.  This ruling concerned Motions to Dismiss filed by three defendants:  the City of Duquesne, Twin Rivers Council of Governments, and W & J Contractors, Inc.

Concerning these three defendants, the court granted their Motions to Dismiss the insured’s bad faith and breach of contract claims against them.  First, the City of Duquesne and the Twin Rivers Council of Governments are governmental bodies and not insurers.  A claim for bad faith under 42 Pa. C.S.A. §8371 can only be brought against an insurer.

Also, all three defendants never had a contractual relationship with the insured.  The insured never contended in the original or amended complaint that any of these three defendants were insurers on the policies or entered into contracts with him.  Therefore, the claims for breach of contract and bad faith against the three defendants were dismissed, with prejudice.

Date of Decision:  May 18, 2010

Allegrino v. Conway E & S, Inc., Civil Action No. 09-1507, United States District Court for the Western District of Pennsylvania, 2010 U.S. Dist. LEXIS 48781, (W.D. Pa. May 18, 2010) (Fischer, J.).