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Case Number: 2:23-cv-01508
Judge: John J Tuchi
Court: United States District Court for the District of Arizona (Maricopa County)
Plaintiff's Attorney: Dan Brill
Description: Phoenix, Arizona insurance law lawyer represented Plaintiff who sued Defendant on a bad faith breach of contract theory.
In Arizona, an insurance company has a duty to act in good faith and fair dealing when dealing with its insureds. This means that the insurance company must investigate claims fairly and promptly, and it must not deny or delay payment of a claim without a reasonable basis.
If an insurance company breaches its duty of good faith, the insured may be able to sue the insurance company for bad faith. To prove a bad faith claim in Arizona, the insured must show the following:
The insurance company acted unreasonably.
The insurance company knew that its conduct was unreasonable or the conduct was so reckless that knowledge should be imputed to the insurance company.
The insured suffered damages as a result of the insurance company's bad faith.
The unreasonableness standard in Arizona is a subjective standard. This means that the court will consider all of the facts and circumstances of the case to determine whether the insurance company acted unreasonably. Some factors that the court may consider include:
The nature of the claim.
The amount of money in dispute.
The insurer's investigation of the claim.
The insurer's communication with the insured.
The insurer's reasons for denying or delaying payment of the claim.
If the insured can prove a bad faith claim, the insurance company may be liable for the insured's actual damages, as well as punitive damages. Punitive damages are intended to punish the insurance company for its bad faith conduct and to deter other insurance companies from engaging in similar conduct.
If you believe that your insurance company has acted in bad faith, you should consult with an attorney. An attorney can help you understand your legal rights and options.
Here are some examples of bad faith insurance practices in Arizona:
Denying a claim without a reasonable basis.
Delaying payment of a claim without a reasonable basis.
Failing to investigate a claim properly.
Failing to communicate with the insured about the claim.
Making false or misleading statements to the insured about the claim.
Requiring the insured to sign a release before paying the claim.
If you have been the victim of bad faith insurance practices, you should contact an attorney to discuss your legal options.
Outcome: ORDER granting the Stipulation (Doc. 8 ). The above-entitled matter is hereby dismissed without prejudice, the parties to bear their own costs and attorneys' fees. The Clerk is directed to close this matter. Signed by Judge John J Tuchi on 8/18/2023. (KJ) (Entered: 08/18/2023)