NOVEMBER 2007 BAD FAITH CASES PURPORTED OWNERS STILL HAD NO RIGHT TO BRING CONTRACT OR BAD FAITH ACTION WHEN THERE WERE NOT PARTIES TO THE POLICY (Philadelphia Federal)

In Banos v. State Farm Ins. Co., 4 siblings tried to make breach of contract and bad faith claims against an insurer for a fire loss.  The policy was issued only in their parents’ names, though they claimed the carrier knew that they were owners.  The court found that absent a contractual obligation between these siblings and the carrier, there could be no breach of contract or bad faith claims by them against the insurer.

Date of Decision:  October 10, 2007

Banos v. State Farm Ins. Co., No. 7-2783, 2007 U.S. Dist. LEXIS 75189 (E.D. Pa. October 10, 2007) (Sanchez, J.)

L.A.