Harold Barrow and Sherrie Barrow v. Liberty Mutual Personal Insurance Company

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

I Overview
Oklahoma insurance bad faith law holds insurers to an implied duty of good faith and fair dealing, meaning they must act reasonably, thoroughly investigate, and promptly pay covered claims, not delay or deny them without cause; a breach allows policyholders to sue for contract damages
plus extra damages like emotional distress, attorney fees, and punitive damages, requiring proof the claim was covered and the insurer's denial/delay was unreasonable.
Key Principles:

Implied Duty: Every insurance contract has an implied duty for the insurer to act in good faith and deal fairly with the insured.
Tort, Not Just Contract: Bad faith is a tort (a civil wrong), allowing for damages beyond just the policy amount, unlike a simple contract breach.
First-Party Claims: Applies to claims with your own insurer (e.g., car, home) and third-party claims (liability defense).

Examples of Bad Faith Conduct:

Unreasonably denying or delaying payment on a valid claim.
Failing to conduct a reasonable and thorough investigation.
Misrepresenting policy provisions to avoid paying.
Offering a settlement far below the claim's true value.
Putting the insurer's interest above the customer's.

To Prove Bad Faith (Generally):

Your loss was covered by the policy.
The insurer's refusal or delay in paying was unreasonable.
The insurer violated the duty of good faith and fair dealing.
You suffered damages because of this breach.

Potential Damages:

Policy benefits owed.
Emotional distress/mental anguish.
Attorney fees, court costs.
Punitive damages (to punish the insurer).

Important Note:

A mere denial or delay isn't automatically bad faith; the action must be unreasonable and without good cause.

Settled for an undisclosed sum and dismissed with prejudice.