NOVEMBER 2007 BAD FAITH CASES ON REMAIND, TRIAL COURT UPHOLDS ORIGINAL ATTORNEY’S FEE AWARD, AND ADDS FEES FOR PORTIONS OF APPEAL AFFIRMED(Third Circuit)

    

In Gallatin Fuels, Inc. v. Westchester Fire Ins. Co., the district court heard a motion under Rule 60(b) to reconsider its earlier award of attorneys’ fees, costs and prejudgment interest, in light of the Third Circuit’s decision in Gallatin Fuels, Inc. v. Westchester Fire Ins. Co., 2007 U.S. App. LEXIS 19069 (3d Cir. Aug. 9, 2007) (Fisher, J) http://www.ca3.uscourts.gov/opinarch/063133np.pdf (see September 2007 Bad Faith Cases on this blog), that had reversed in part and affirmed in part.  Specifically, the Third Circuit had found there was no breach of contract, but did find bad faith.  The district court upheld its award of attorneys’ fees under the bad faith statute, but reversed its award of prejudgment interest, which had been based on its now reversed decision on compensatory damages for breach of contract.  The court additionally awarded attorney’s fees (though not costs) in connection with the carrier’s appeal of the bad faith and punitive damages awards only.  Plaintiff could not recover fees associated with its own appeal, the reversed contract claim or those incurred in the instant motion.

Date of Decision:  October 31, 2007

Gallatin Fuels, Inc. v. Westchester Fire Ins. Co., United States District Court for the Western District of Pennsylvania, No. 02-2116, 2007 U.S. Dist. LEXIS 80538 (W. D. Pa. October 31, 2007) (Ambrose, C. J.)

L.A.