MAY 2015 BAD FAITH CASES: NO BAD FAITH WHERE NO BREACH OF OBLIGATION TO PAY BENEFITS; FEGLI PRE-EMPTS STATE BAD FAITH LAW (Western District)

In Hajdu v. Metropolitan Life Insurance Company, the court found: “Since, as a matter of law, [the insurer] did not breach the FEGLI contract by not paying benefits under [the] annuitant policy, no claim for bad faith can be established.”  Further, the court found the FEGLI pre-empted state bad faith law.

Date of Decision:  May 6, 2015

Hajdu v. Metro. Life Ins. Co., Civil Action No. 15-195, 2015 U.S. Dist. LEXIS 59318 (W.D. Pa. May 6, 2015)(Conti, C.J.)