Matthew Hammett v. State Farm Fire and Casualty Company

Little Rock, Arkansas, insurance law lawyer represented the Plaintiff on a bad faith breach of contract claim.

In Arkansas, an insurance bad faith claim requires proving the insurer's
affirmative misconduct that is dishonest, malicious, or oppressive, not just a simple failure to pay; it's a high bar requiring an extreme "evil intent" or "wanton disregard," allowing for tort damages, including punitive damages, beyond mere breach of contract remedies. Insurers owe a fiduciary duty, meaning they must act in the insured's best interest, but bad faith claims are limited to egregious behavior like lying about coverage or aggressively coercing policyholders, not just uncooperative conduct.

Key Elements of an Arkansas Bad Faith Claim:

Affirmative Misconduct: More than just denying a claim; it's an active, dishonest, malicious, or oppressive act.

High Standard: Requires "willful or malicious" conduct, not just negligence or unreasonableness, to overcome the high hurdle for proving bad faith.

Intent: Must show an intent to deceive, oppress, or act with ill will, not just a good faith reason to contest a claim.

Examples: Lying about coverage, altering records, aggressive tactics, or systematically contradicting neutral findings.

What It's Not:

Mere Breach: A simple failure to pay a valid claim isn't enough for bad faith; it's a separate tort.

Uncooperative or Difficult: Being hard to deal with or slow isn't sufficient to meet the bad faith standard.

Remedies:

Punitive Damages: Available for extreme misconduct, allowing for penalties beyond compensatory losses.

Compensatory Damages: Actual losses, consequential damages, interest, and potentially attorney's fees.

In Summary:

An Arkansas bad faith claim is a serious tort allowing for significant damages, but only when an insurer engages in truly egregious, intentional misconduct beyond normal claim disputes, imposing a heavy burden of proof on the policyholder to show more than just a simple contractual breach.

01/07/2026 11 ORDER dismissing this case with prejudice pursuant to 10 parties' joint motion to dismiss. Each party is to bear its own fees and costs. Signed by Judge Brian S. Miller on 1/7/2026. (ljb) (Entered: 01/07/2026)
01/07/2026 12 JUDGMENT: Consistent with 11 order entered today, this case is dismissed with prejudice. Signed by Judge Brian S. Miller on 1/7/2026. (ljb) (Entered: 01/07/2026)