Ira A. Troyer v. Maryland Casualty Company, et al.

Missoula, Montana, insurance law lawyers represented the Plaintiff on a bad faith breach of insurance contract theory.



AI Overview

In Montana, an insurance company breaches the implied covenant of "good faith" by knowingly or recklessly failing to settle a claim or by acting with unfair or deceptive practices, such as misrepresenting policy provisions, unreasonably delaying a claim, or improperly denying a valid claim. Policyholders can sue for bad faith and may be awarded damages, including emotional distress, interest, and punitive damages.

What constitutes bad faith in Montana



Misrepresenting facts: Providing false or misleading information about policy terms or coverage.



Unreasonable denial or delay: Denying a claim without a proper investigation or delaying payment without a valid reason.

Failing to settle: Not making a prompt or fair settlement offer when liability is reasonably clear.

Improper investigation: Failing to conduct a reasonable and thorough investigation of a claim.

Failure to provide information: Not providing the policyholder with information on what they are entitled to claim.



Potential damages



Contractual damages: The original amount owed under the policy, plus interest calculated from the date the claim should have been paid.

Emotional distress: Compensation for emotional suffering caused by the insurer's actions.

Punitive damages: Damages intended to punish the insurer for particularly bad behavior, which can be substantial.



Statute of limitations



First-party claimants: Two years from the date of the violation.

Third-party claimants: One year from the date of the violation.

Settled on undisclosed terms and dismissed.