NOVEMBER 2007 BAD FAITH CASES
COURT REFUSES TO DISMISS ON BASIS OF STATUTE OF LIMITATIONS AT MOTION TO DISMISS STAGE (Western District)

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The insured sought a declaratory judgment and asserted breach of contract and bad faith claims against two insurers. The insurers moved to dismiss based on a two year contractual statute of limitations. The court determined that it could not rule against the insured at the motion to dismiss stage, and distinguished a case arguing that the discovery rule could not apply because it was at the summary judgment stage.

Date of Decision: November 9, 2007

Nelson v. Vigilant Ins. Co., United States District Court for the Western District of Pennsylvania, No. 07-1406, 2007 U.S. Dist. LEXIS 83394 (Schwab, J.)

L.A.