John Gardner and Jennifer Gardner v. Allstate Fire and Casualty Insurance Company

Seattle, Washington insurance law lawyer represented the Plaintiff who sued on a bad faith breach of insurance contract theory.



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In Washington, an insurance company's bad faith breach of contract occurs when it unreasonably denies, delays, or underpays a claim. This can involve failing to investigate a claim properly, providing insufficient reasons for denial, or offering a low settlement offer without justification. Washington law protects policyholders through the Insurance Fair Conduct Act (IFCA) (RCW 48.30.015) and the Consumer Protection Act (CPA) (RCW 19.86.020). IFCA allows policyholders to sue for damages, including attorney's fees and potentially treble damages, if an insurer unreasonably denies coverage. The CPA, in turn, prohibits unfair or deceptive acts in trade or commerce, including insurance practices, and allows for similar remedies.



Here's a more detailed breakdown:



Common Law Bad Faith:



Washington law recognizes a common law duty of good faith and fair dealing in insurance contracts.



This duty requires insurers to act reasonably and fairly when handling claims.

Breach of this duty occurs when an insurer's conduct is unreasonable, frivolous, or unfounded in denying or delaying a claim, according to Justia Law.



Examples of bad faith include failing to properly investigate a claim, failing to communicate with the insured, or making unreasonably low settlement offers.



Damages for common law bad faith are limited to foreseeable harm, including financial and emotional distress, but do not include punitive damages.



Insurance Fair Conduct Act (IFCA):



IFCA specifically addresses bad faith conduct by insurance companies in Washington.



It allows policyholders to sue for damages if an insurer unreasonably denies a claim.



IFCA also allows for the recovery of reasonable attorney's fees and costs.



In some cases, treble damages may be awarded.



IFCA essentially codifies the common law duty of good faith and fair dealing and provides a statutory cause of action for its breach.



Washington Consumer Protection Act (CPA):



The CPA prohibits unfair or deceptive acts or practices in the conduct of any trade or commerce.



Violations of certain Washington Administrative Code (WAC) regulations related to insurance practices are considered per se violations of the CPA.



This allows policyholders to bring a cause of action under the CPA for bad faith insurance practices.



CPA claims require proof of an unfair or deceptive act or practice, impact on the public interest, and injury to the plaintiff.



Damages under the CPA can include compensation for financial or property loss, and potentially attorney's fees and costs.



Key Considerations:



Reasonable Basis:



An insurer's denial of a claim is not bad faith if it is based on a reasonable interpretation of the insurance policy, according to Super Lawyers.



"Stall Tactics":



Unreasonable delays in processing claims, or forcing claimants into litigation, can be indicators of bad faith.



Importance of Investigation:



Insurers have a duty to investigate claims to determine their validity. Failure to investigate or investigate adequately can be evidence of bad faith.



Burden of Proof:



In a bad faith claim, the insured has the burden of proving the insurer's bad faith conduct and the resulting damages.

7/18/2025 11 STIPULATED ORDER OF DISMISSAL WITH PREJUDICE by Hon. Brian A Tsuchida. (TF) (Entered: 07/18/2025)

07/18/2025 12 JUDGMENT BY COURT; Pursuant to the parties' 10 Stipulated Order of Dismissal, this case is dismissed with prejudice and without an award of costs to any party. (TF) (Entered: 07/18/2025)