OCTOBER 2008 BAD FAITH CASES FEDERAL COURT WOULD NOT ABSTAIN FROM HEARING BAD FAITH CASE (Western District)

    

In Marchky v. Motorists Mutual Insurance Company, the plaintiffs brought a UIM claim and a bad faith claim for defendant’s unreasonable evaluation of plaintiffs claim and defendant’s unreasonable offer of settlement.  The insurer removed the case to federal court and the plaintiffs sought remand based on Colorado River abstention and/or that the amount in controversy did not exceed $75,000.  The court easily rejected the later argument in a footnote, and rejected the former, fundamentally because there was no parallel state proceeding.

Date of Decision:  August 18, 2008

Marchky v. Motorists Mutual Insurance Company, United States District Court for the Western District of Pennsylvania, No. 08-1058, 2008 U.S. Dist. LEXIS 63364 (W.D.Pa. August 18, 2008)(Schwab, J.)

L.A.