Song-Dae Kim Lee v. State Farm Fire and Casualty Company

Baton Rouge, Louisiana insurance law lawyer represented the Plaintiff who sued the Defendant on a bad faith breach of insurance contract.



Louisiana bad faith insurance law requires insurers to handle claims fairly and promptly, imposing penalties on those who act "arbitrarily, capriciously, or without probable cause" in adjusting or paying claims

. If an insurer fails to pay a valid claim within the statutory timeframe (30 days under La. R.S. 22:1892) after receiving satisfactory proof of loss, the insured can recover penalties of 50% of the amount due or $1,000, plus reasonable attorney fees and costs. To succeed, the insured must prove a valid claim exists, provided satisfactory proof of loss, and the insurer's failure to pay was unjustified.

What Constitutes Bad Faith

An insurer acts in bad faith in Louisiana when it:



Unreasonably Denies a Claim: Refuses to pay a valid claim despite clear proof of coverage.



Unjustifiably Delays Payment: Takes an unusually long time to pay a claim or respond to the policyholder's concerns.

Conducts Incomplete Investigations: Fails to gather enough information to make an informed decision about the claim.

Misleads the Insured: Provides inaccurate or misleading information regarding the claim's denial or underpayment.





Elements of a Bad Faith Claim



To succeed in a bad faith lawsuit in Louisiana, a claimant must demonstrate three things: the insurer received satisfactory proof of loss, the insurer failed to pay within the legal timeframe, and this failure was arbitrary and capricious.

Joint Motion to Dismiss. IT IS ORDERED that matter is hereby dismissed, with full prejudice, each party to bear its own costs of court. Signed by Judge John W. deGravelles on 08/22/02025. (This is a TEXT ENTRY ONLY. There is no hyperlink or PDF document associated with this entry.) (KDC) (Entered: 08/22/2025)