Lindsay Gregory v. State Farm Fire & Casualty Company

Date: 10-19-2025

Case Number: 24-CV-193

Judge: Rebecca L. Pennell

Court: United States District Court for the Eastern District of Washington (Spokane County)

Plaintiff's Attorney:

Defendant's Attorney:

Description: Spokane, Washington, insurance lawyer represented the Plaintiff on a bad faith breach of insurance contract theory.

In Washington, an insurance company can be sued for bad faith if it acts unreasonably, such as by delaying a claim without cause, misrepresenting facts, or improperly denying a claim after a flawed investigation
. Proving bad faith requires showing the insurer's actions were unreasonable or that they knew or recklessly disregarded the lack of a reasonable basis for their actions. Unlike a simple breach of contract, a successful bad faith claim can allow the insured to recover not only the policy benefits but also attorney's fees, litigation expenses, and potentially treble damages and emotional distress damages.
What constitutes bad faith

Unreasonable denial or delay: Denying a claim without a reasonable basis or causing unreasonable delays without a good explanation.
Improper investigation: Failing to conduct a fair and thorough investigation, or "cherry-picking" facts to support a denial.
Misrepresentation: Intentionally misrepresenting facts or policy provisions to the insured.
Failure to communicate: Not providing necessary information or failing to pass along important communications.

How to prove bad faith

The core requirement is to show the insurer acted unreasonably or had no reasonable basis for its actions.
You may need to show the insurer knew, or should have known, they had no reasonable basis for denying the claim.
Evidence could include an insurer deliberately avoiding facts, covering up mistakes, or making delays without explanation.
Unlike a simple breach of contract, bad faith is a separate tort claim that requires proving the insurer's bad conduct, not just the failure to pay the claim.

Potential remedies

Contractual damages: The original amount owed under the policy.
Punitive damages: Damages to punish the insurer for bad conduct.
Emotional distress damages: Compensation for emotional suffering caused by the insurer's actions.
Treble damages: Up to three times the actual damages, available under the Insurance Fair Conduct Act (IFCA).
Attorney's fees and litigation expenses: Costs associated with bringing the lawsuit

Outcome: Settled for an undisclosed sum and dismissed with prejudice.

Plaintiff's Experts:

Defendant's Experts:

Comments: