NOVEMBER 2007 BAD FAITH CASES COURT REFUSES TO DISMISS ON BASIS OF STATUTE OF LIMITATIONS AT MOTION TO DISMISS STAGE (Western District)

In Nelson v. Vigilant Insurance Company, the insured sought a declaratory judgment and asserted breach of contract and bad faith claims against two insurers.  The insurers moved to dismiss based on a two year contractual statute of limitations.  The court determined that it could not rule against the insured at the motion to dismiss stage, and distinguished a case arguing that the discovery rule could not apply because it was at the summary judgment stage.

Date of Decision:  November 9, 2007

Nelson v. Vigilant Ins. Co., United States District Court for the Western District of Pennsylvania, No. 07-1406, 2007 U.S. Dist. LEXIS 83394 (Schwab, J.)

L.A.