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Case Number: 2:21-cv-11036
Judge: Paul D. Borman
Court: United States District Court for the Eastern District of Michigan (Wayne County)
Plaintiff's Attorney: Fahd Haque
Defendant's Attorney: Elizabeth Fararo
Description: Detroit, Michigan personal injury lawyer represented Plaintiff who sued Defendant on a bad faith breach of insurance contract theory.
"In Michigan, bad faith breach of an insurance contract is a tort action that allows an insured to recover damages from their insurance company for the insurer's unreasonable delay in settling a claim or for denying a claim that was clearly covered by the policy.
To succeed in a bad faith breach of insurance contract claim, the insured must prove the following elements:
The existence of an insurance contract between the insured and the insurer.
The insurer's breach of the contract by unreasonably delaying settlement or denying a claim that was clearly covered by the policy.
The insurer's breach of the contract was intentional or reckless.
The insured suffered damages as a result of the insurer's breach.
The standard for proving bad faith in Michigan is a subjective one. The insurer's actions must have been motivated by a desire to deny the claim or to delay settlement for reasons other than a good faith belief that the claim was not covered.
The damages that an insured can recover in a bad faith breach of insurance contract claim include:
The amount of the claim that was denied or delayed.
Interest on the amount of the claim.
Punitive damages, which are damages that are awarded to punish the insurer for its bad faith conduct.
The amount of punitive damages that can be awarded in a bad faith breach of insurance contract claim is capped at $350,000.
If you believe that your insurance company has breached your insurance contract in bad faith, you should speak to an attorney. An attorney can help you understand your rights and can help you file a lawsuit against your insurance company.
Here are some additional things to keep in mind about bad faith breach of insurance contract claims in Michigan:
The statute of limitations for bad faith breach of insurance contract claims in Michigan is three years. This means that you must file your lawsuit within three years of the date that the insurer breached the contract.
Bad faith breach of insurance contract claims are complex, and it is important to speak to an attorney if you believe that your insurance company has breached your contract in bad faith.
Outcome: 08/04/2023 63 OPINION and ORDER (1) Granting in Part and Denying in Part Defendant Empire Fire and Marine Insurance Company's Motion for Summary Judgment Against Plaintiff and Allstate Insurance Company (ECF No. 24 ), and (2) Granting Allstate's Motion for Summary Judgment Against Plaintiff and Empire Fire and Marine Insurance Company (ECF No. 55 ) Signed by District Judge Paul D. Borman. (EPar) (Entered: 08/04/2023)
08/04/2023 64 JUDGMENT. Signed by District Judge Paul D. Borman. (EPar) (Entered: 08/04/2023)