John Michael Howard, et al. v. State Farm Mutual Automobile Insurance Company

Salt Lake City, Utah insurance law lawyer represented Plaintiffs who sued Defendant on a bad faith breach of contract theory.



"In Utah, bad faith breach of insurance contract law is a cause of action that can be brought by an insured against an insurance company. To succeed on a bad faith claim, the insured must prove that the insurance company:



Had a duty to act in good faith. This duty arises from the insurance contract itself, which creates a fiduciary relationship between the insurer and the insured.

Breached that duty. This means that the insurer acted unreasonably or without regard for the insured's interests.

Caused the insured damages. This can include the amount of the insurance claim that was denied, as well as any other losses that the insured incurred as a result of the insurer's bad faith.



It is important to note that Utah does not recognize bad faith as a separate cause of action in first-party insurance cases. In these cases, the insured must bring a breach of contract claim. However, the elements of a bad faith claim are the same as the elements of a breach of contract claim, so the analysis is essentially the same.



Here are some examples of bad faith conduct by an insurance company:



Denying a valid claim without a reasonable basis.

Delaying payment of a claim without justification.

Offering a settlement that is significantly below the value of the claim.

Refusing to cooperate with the insured in the investigation and settlement of a claim.

Lying to the insured about the status of their claim.



If you believe that your insurance company has acted in bad faith, you should contact an experienced attorney to discuss your legal options."



Google Bard

Settled for an undisclosed sum and dismissed with prejudice.