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Federal Court Dismisses Portions of Plaintiff’s Claims Against Insurer for Failing to Pay UIM Benefits

October 30, 2023

Via: JD Supra

The plaintiff was involved in a motor vehicle accident and claims to have sustained serious personal injuries. The plaintiff had $600,000 in underinsured/uninsured motorist coverage with his insurer. The plaintiff settled his primary underinsured claim and the third-party bodily injury claim with the tortfeasor for the total policy limits and for the majority of the primary uninsured limits.

The plaintiff claimed that his insurer delayed in paying the UIM benefits. In its defense of USAA, Marshall Dennehey moved to dismiss the plaintiff’s complaint, and we successfully knocked out a number of the plaintiff’s claims, including the claim for bad faith. Interestingly, the court determined that the plaintiff did not allege sufficient grounds as a matter of law to establish bad faith—noting that “negligence or bad judgment does not equate to bad faith.”

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