Jeffrey Davis v. First Protective Insurance Company

Wilmington, North Carolina insurance law lawyer represented the Plaintiff who sued the Defendant on a bad faith breach of insurance contract theory.



"North Carolina law recognizes bad faith breach of insurance contract as a separate tort claim. This means that an insured can sue its insurance company for bad faith, even if the insured's claim for breach of contract is unsuccessful.



To prevail in a bad faith claim in North Carolina, the insured must prove the following four elements:



The insured had a valid insurance policy with the insurer.

The insured suffered a covered loss.

The insurer unreasonably denied or delayed payment of the claim.

The insured suffered damages as a result of the insurer's bad faith.



The insurer's conduct may be considered unreasonable if it:



Denies or delays payment of a claim without a valid reason.

Fails to investigate a claim properly.

Lowers the amount of a claim without justification.

Refuses to settle a claim within policy limits, even though it is clear that the insured is liable.

Uses unfair or deceptive tactics to settle a claim.



If the insured is successful in a bad faith claim, they may be awarded damages, including:



The full amount of the insurance claim, plus interest.

Emotional distress damages.

Punitive damages.



Punitive damages are intended to punish the insurance company for its bad faith conduct and deter other insurance companies from engaging in similar conduct.



Here are some examples of bad faith breach of insurance contract law in North Carolina:



An insurance company denies a valid claim because the insured made a minor mistake on the claim form.

An insurance company delays payment of a claim for several months without providing a reason to the insured.

An insurance company offers a lowball settlement offer to the insured, even though the insured has significant damages.

An insurance company uses a variety of deceptive tactics to try to convince the insured to settle their claim for less than they deserve.



If you believe that your insurance company has breached its duty of good faith and fair dealing, you should contact an experienced insurance attorney to discuss your legal options."



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Settled for an undisclosed sum and dismissed with prejudice.