2013 BAD FAITH CASES: COURT GRANTS MOTION FOR SUMMARY JUDGMENT ON COVERAGE ISSUE BASED ON BABCOCK RULING, REJECTING WAIVER AND ESTOPPEL ARGUMENTS ON BASIS OF PROPER RESERVATION OF RIGHTS; BUT UNADJUDICATED BAD FAITH CLAIM ON FAILURE TO SETTLE, RATHER THAN INTERPLEAD POLICY LIMITS, REMAINED OPEN (Philadelphia Federal)

This case involves a coverage dispute between plaintiff, the primary insurer, the defendant-insured, and the excess and umbrella insurer. Plaintiff filed a complaint alleging its…

DECEMBER 2013 BAD FAITH CASES: NEW JERSEY SUPERIOR COURT HOLDS SIMULTANEOUS BREACH OF CONTRACT AND BAD FAITH CLAIMS MUST BE BIFURCATED, WITH THE BAD FAITH CLAIM, INCLUDING DISCOVERY, STAYED PENDING RESOLUTION OF THE BREACH OF CONTRACT CLAIM (New Jersey Appellate Division)

The Appellate Division reversed an order from the Law Division bifurcating and staying plaintiff’s bad faith claim from his UIM claim for trial purposes, but…