OCTOBE R 2013 BAD FAITH CASES: COURT DETERMINES DAMAGES AND ATTORNEYS’ FEES AWARDER TO INSURER AND AGAINST INSURED AND ITS PRINCIPAL UNDER INSURANCE FRAUD ACT (Philadelphia Federal)

In Zenith Insurance Company v. Glasbern, Inc., a jury found an insured and its principal liable under Pennsylvania’s insurance fraud act, 18 Pa.C.S. section 4117, in failure to make disclosures in connection with the issuance of a workers’ compensation policy. It was left to the court to determine damages and attorneys’ fees. In its initial decision, the court awarded over $1,000,000 in damages in connections with medical and other payments. In its second opinion, the court awarded legal fees and costs in excess of $580,000.

Dates of Decision: August 23, 2013 and September 10, 2013

Zenith Insurance Company v. Glasbern, Inc., CIVIL ACTION NO. 10-5433, 2013 U.S. Dist. LEXIS 120484 (E.D. Pa. Aug. 23, 2013) (Bartle, J.)

Zenith Insurance Company v. Glasbern, Inc., CIVIL ACTION NO. 10-5433, 2013 U.S. Dist. LEXIS 128557 (E.D. Pa. September 10, 2013) (Bartle, J.)