Sharon Pellman v. Allstate Property and Casualty Insurance Company

Harrisburg, Pennsylvania insurance law lawyer represented Plaintiff who sued Defendants on a bad faith breach of insurance contract theory.



"In Pennsylvania, an insurance company can be held liable for bad faith if it breaches its duty of good faith and fair dealing to its insured. This duty requires the insurer to act reasonably and honestly in all dealings with the insured, including in the investigation, processing, and payment of claims.



There are a number of ways in which an insurer can breach its duty of good faith. For example, the insurer may:



Deny a claim without a reasonable basis.

Delay in investigating or processing a claim.

Offer a settlement that is unreasonably low.

Fail to defend the insured in a lawsuit.

Act in a way that is motivated by self-interest rather than the best interests of the insured.



If an insurer breaches its duty of good faith, the insured may be able to recover damages, including:



The amount of the claim that was wrongfully denied.

Interest on the amount of the claim.

Punitive damages.

Attorney's fees.



To prove bad faith, the insured must show that the insurer acted with a reckless disregard for its obligations under the policy. The insured does not have to prove that the insurer acted with malice or ill will.



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



Google Bard

ORDER DISMISSING CASE without costs and without prejudice to the right of either party, upon good cause shown within sixty (60) days, to reinstate the action if settlement is not consummated. Signed by Honorable Sylvia H. Rambo on 4/12/23. (ma) (Entered: 04/12/2023)