Joann Kurutz, et aux. v. American States Insurance Company

Pittsburgh, Pennsylvania insurance law lawyer represented the Plaintiff who sued the Defendant on a bad faith breach of insurance contract.



"Pennsylvania law recognizes both first-party and third-party bad faith claims.



First-party bad faith occurs when an insurance company breaches its duty of good faith and fair dealing in its handling of an insured's claim. This can include refusing to pay a valid claim, delaying payment without justification, or underpaying a claim.



Third-party bad faith occurs when an insurance company breaches its duty to defend or settle a third-party lawsuit against its insured. This can include refusing to defend a valid claim, failing to settle a claim within the policy limits, or settling a claim without the insured's consent.



To succeed on a bad faith claim, the plaintiff must prove the following elements:



The insurance company had a duty of good faith and fair dealing to the plaintiff.

The insurance company breached its duty of good faith and fair dealing.

The breach of duty caused the plaintiff damages.



The duty of good faith and fair dealing requires insurance companies to act in the best interests of their insureds. This means that insurance companies must investigate claims fairly, pay valid claims promptly, and settle claims within the policy limits if possible.



The breach of duty element can be satisfied by showing that the insurance company acted unreasonably or arbitrarily. For example, if an insurance company refuses to pay a valid claim without explanation, or if it delays payment without justification, this may be evidence of a breach of duty.



The damages element can be satisfied by showing that the plaintiff suffered economic losses or emotional distress as a result of the insurance company's bad faith conduct. For example, if an insurance company refuses to pay a valid claim for property damage, the insured may suffer economic losses due to the cost of repairs or replacement. If an insurance company delays payment for a valid claim, the insured may suffer emotional distress due to the financial uncertainty.



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



Google Bard

09/22/2023 62 Praecipe to Settle and Discontinue as to Plaintiff by JOANN KURUTZ. (Tarasi, Elizabeth) (Entered: 09/22/2023)

09/22/2023 63 ORDER DISMISSING CASE Signed by Judge Marilyn J. Horan on 9/22/2023. (bjl) (Entered: 09/22/2023)