MAY 2009 BAD FAITH CASES
COURT DISMISSES CONTRACT ON BASIS OF CONTRACTUAL LIMITATIONS; BAD FAITH NOT SUFFICIENTLY PLED (Philadelphia)

In Dolley v. Allstate Insurance Company, the Court of Common Pleas of Philadelphia dismissed the insured’s breach of contract claim on the basis that the insured failed to bring the claim within the one year contractual period required to bring any claim. As to the bad faith count, the Court did not rely on that contractual term, but after stating the standard for showing bad faith, and that it must be proved by clear and convincing evidence, found that the insured failed to plead facts sufficient to establish that the insurer “acted in bad faith, with improper motive, or recklessness by denying Plaintiff’s claim.” This decision was not in Philadelphia’s Commerce Court.

Date of Decision: January 13, 2009

Dolley v. Allstate Ins. Co., April Term 2008, No. 577, COURT OF COMMON PLEAS OF PHILADELPHIA COUNTY, PENNSYLVANIA, 2009 Phila. Ct. Com. Pl. LEXIS 27 (C.C.P. Phila. Jan. 13, 2009) (DiVito, J.)