Originally published by Brandee Bower.
A recent federal decision in Virginia has confirmed that policyholders may pursue first party bad faith claims against insurance companies.1
A hotel reported a loss after its HVAC roof units were stolen, resulting in property damage and loss of business income. The insurance company investigated the claim and issued five reservation of rights letters citing various exclusions to bar coverage. It also filed a declaratory action seeking a determination of no coverage. The hotel counterclaimed for breach of contract and breach of the duty of good faith and fair dealing. The court found that the 4th Circuit and Eastern District of Virginia recognize an “implied duty of good faith and fair dealing governing first party relationships in Virginia.”
The owner of the hotel believed that an employee may be responsible for theft of certain items. There was an exclusion in the policy for losses due to criminal acts by employees. When interviewed, the employee admitted to stealing…
.
Curated by Texas Bar Today. Follow us on Twitter @texasbartoday.
from Texas Bar Today http://ift.tt/1GYbtas
via Abogado Aly Website
No comments:
Post a Comment