CONSUMER PROTECTION LAW STATUTE DOES NOT APPLY TO POST-POLICY CLAIM HANDLING (Western District)

In this case, Magistrate Judge Mitchell outlines the scope of Pennsylvania’s Unfair Trade Practices and Consumer Protection Law (UTPCPL) in relation to Pennsylvania’s Insurance Bad Faith Statute. Citing prior case law, he makes clear that UTPCPL claims only address an insurer’s conduct prior to entering the insurance agreement, while Statutory Bad Faith suits focus on claim handling under the policy, i.e., post policy conduct.

The present complaint’s UTPCPL claims fell on the wrong side of this time line. The allegations at issue only addressed post policy claim handling, not malfeasance in forming the insurance contract. Thus, the UTPCPL claims could not stand under Magistrate Judge Mitchell’s analysis. District Court Judge Schwab agreed. He entered an order adopting the magistrate’s report and recommendation, and dismissed the UTPCPL count.

Dates of Decision: November 29, 2018 (Report and Recommendation), December 17, 2018 (District Court Order Adopting Report and Recommendation)

Neustein v. Gov’t Emples. Ins. Co., U.S. District Court Western District of Pennsylvania Civil Action No. 18-cv-645, 2018 U.S. Dist. LEXIS 203439 (W.D. Pa. Nov. 29, 2018) (Mitchell, M.J.) (Report and Recommendation), adopted by District Court (Dec. 17, 2018)