SEPTEMBER 2018 BAD FAITH CASES: WHERE NO DEFENSE DUE COURT MUST DISMISS BAD FAITH CLAIM (Philadelphia Federal)
The court found there was no duty to defend under a title insurance policy. Citing the seminal Frog Switch case, the court observed: “Importantly, where there [is] no duty to defend, there [is] good cause to refuse to defend against suit.” The court then concluded, “[b]ecause we have already held that [the insurer] is entitled to summary judgment based on the finding that it did not have a duty to defend … in the Underlying Action, we must also find that [the insurer] had good cause to refuse [the] request for coverage. Accordingly, we grant summary judgment in favor of [the insurer] on [the] bad faith claim.”
