We previously discussed this case on September 6, 2017. It involves the alleged illicit draining of funds from the insured’s annuity account by her former husband.
After the Court granted the insurer’s earlier motion to dismiss the insured’s claim for breach of the covenant of good faith and fair dealing, without prejudice, the insured filed an amended complaint. The amended complaint is identical to the insured’s initial complaint except for seven added paragraphs. The insurer filed another motion to dismiss the bad faith claim.
The Court again granted the insurer’s motion to dismiss the bad faith claim without prejudice. “To state a claim . . ., [the insured] must present some facts indicating bad motive.” “[I]t is not enough, . . . to infer bad intentions from bad consequences.” The Court stated that some facts may exist to eventually support a finding of bad faith, and held that a dismissal with prejudice would therefore be inappropriate at this time.
Date of Decision: April 4, 2018
Adams v. Allstate Life Ins. Co., United States District Court, District of New Jersey, Civil Action No. 16-9465 (RBK), 2018 U.S. Dist. LEXIS 58093 (D.N.J. Apr. 4, 2018) (Kugler, J.)
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