Defendant's Attorney: Patrick W. Franklin, Paul Albert Miller

Description: Decatur, Alabama insurance law lawyer represented the Plaintiff who sued the Defendant on a bad faith breach of insurance contract theory.

Alabama Bad Faith Breach of Insurance Contract Law

In Alabama, an insured can sue their insurance company for bad faith if they can prove the following elements:

1. An insurance contract existed between the parties. This means that there was a valid insurance policy in place and that the insured was covered for the loss in question.

2. The insurance company breached the contract. This means that the insurance company failed to pay the insured's claim, or that it delayed or denied the claim in bad faith.

3. The breach was intentional. This means that the insurance company knew or should have known that its actions were wrongful.

4. The insured suffered damages as a result of the breach. This means that the insured incurred financial losses or emotional distress as a result of the insurance company's actions.

5. The absence of any reasonably legitimate or arguable reason for that refusal. This means that the insurance company did not have a good faith basis for denying the claim.

6. The insurer's actual knowledge of the absence of any legitimate or arguable reason. This means that the insurance company knew that it did not have a legitimate reason for denying the claim.

7. If the intentional failure to determine the existence of a lawful basis is relied upon, the plaintiff must prove the insurer's intentional failure to determine whether there is a legitimate or arguable reason to refuse to pay the claim. This means that the insured must prove that the insurance company deliberately ignored evidence that would have supported the claim.

The damages that an insured can recover in a bad faith lawsuit include:

Contract damages: This is the amount of money that the insured would have received if the insurance company had paid the claim.
Mental anguish damages: This is compensation for the emotional distress that the insured suffered as a result of the insurance company's actions.
Punitive damages: These are designed to punish the insurance company for its wrongdoing and to deter it from engaging in similar conduct in the future.

In Alabama, the law regarding bad faith insurance claims is evolving. It is important to consult with an attorney to discuss your specific case.

Here are some resources that you may find helpful:

Alabama Insurance Association: https://www.aia.org/alabama
Alabama Law on Claim Handling Property and Casualty Claims: https://www.swiftcurrie.com/assets/htmldocuments/claim_handling_prop_and_cas_claims.pdf
Frequently Asked Questions Concerning Alabama Law on Bad Faith Failure to Settle: https://www.alabamainjurylawyer.com/bad-faith-insurance-claims/

I hope this information is helpful. Please let me know if you have any other questions.

Outcome: ORDER OF DISMISSAL: Pursuant to Federal Rule of Civil Procedure 41 (a)(1)(A)(ii), and the parties jointly stipulated to the dismissal of all claims in this action with prejudice, with each party to bear its own costs. This case is CLOSED. Signed by Magistrate Judge Herman N Johnson, Jr on 12/12/2023. (LCB) (Entered: 12/12/2023)

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Defendant's Experts:

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