Defendant's Attorney: Diane K. Pappayliou, Shelley Walters Coleman, and J. Scott Lewis

Description: Wilmington, North Carolina insurance law lawyers represented the Plaintiff who sued the Defendant on a bad faith breach of insurance contract theory.

"North Carolina law recognizes both statutory and common law bad faith breach of insurance contract claims.

Statutory bad faith claims are brought under the North Carolina Unfair and Deceptive Trade Practices Act (UDTPA). The UDTPA prohibits insurance companies from engaging in unfair or deceptive acts or practices in the conduct of insurance business. Some examples of bad faith practices that may violate the UDTPA include:

Denying a valid claim without a reasonable basis
Failing to investigate a claim fairly and promptly
Making lowball settlement offers
Unreasonably delaying payment of a claim
Misrepresenting the terms of an insurance policy

Common law bad faith claims are based on the implied covenant of good faith and fair dealing that is present in every insurance contract. This covenant requires both the insurer and the insured to act in a manner that does not impair the other party's right to receive the benefits of the contract.

To prove a common law bad faith claim, an insured must show that:

The insurer had a valid claim under the policy
The insurer knew or should have known that the claim was valid
The insurer acted in bad faith by denying or delaying payment of the claim

Examples of bad faith conduct that may give rise to a common law claim include:

Refusing to pay a claim without conducting a reasonable investigation
Denying a claim based on a frivolous or technical defense
Delaying payment of a claim in order to pressure the insured to accept a lower settlement

If an insured is successful in proving a bad faith claim, they may be awarded damages for their economic losses, such as the amount of the unpaid claim, as well as non-economic losses, such as emotional distress. In some cases, punitive damages may also be awarded.

If you believe that your insurance company has acted in bad faith, you should consult with an experienced attorney to discuss your case."

Google Bard

Outcome: 09/08/2023 21 STIPULATION of Dismissal by James Thomas Moore (Davenport, Michael) (Entered: 09/08/2023)

Plaintiff's Experts:

Defendant's Experts:

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