Successful Defense of Auto Insurer Against First-Party Bad Faith Claim
Represented insurer which issued an auto policy in Arizona to its insured/plaintiff who was involved in a significant auto accident. After conducting its claims investigation, coverage was denied under insured’s underinsured motorist coverage. Insured thereafter filed suit in the U.S. District Court of Arizona for bad faith seeking policy benefits and punitive damages. After conducting discovery and deposing the insured, summary judgment was filed on behalf of the insurer asserting breach of the policy’s cooperation clause, providing the Court a detailed walkthrough of the insurer’s efforts to fully adjust the claim and the insured’s repeated hinderances and delays. The Court agreed and granted judgment in favor of the insurer, finding the insurer had acted reasonably in handling a pre-suit policy limits demand and in adjusting the claim.