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Case Number: 5:23-CV-0486
Judge: Joseph F. Leeson, Jr.
Court: United States District Court for the Eastern District of Pennsylvania (Lehigh County)
Plaintiff's Attorney: Andrew Muir
Defendant's Attorney: Maida Chinosi
Description: Allentown, Pennsylvania insurance lawyer lawyer represented Plaintiff which sued Defendant on a bad faith breach of insurance contract theory.
This case was filed in the Court of Common Pleas of Lehigh County, 2023-C-0486, and was removed to federal court by the Defendant.
"The idea that a person could sue his insurance company for its misdeeds in handling claims under a policy of insurance is a relatively recent concept in Pennsylvania. For years the legislature invested the power of enforcement in the Insurance Department through the Unfair Insurance Practices Act, 40 P.S. Section 1171.1 et seq. This law specifically prohibited private lawsuits against insurance companies by the public. In addition, the Department was given a broad range of enforcement tools to punish wrongdoing. Justice was in the hands of a bureaucracy, which was oftentimes slow and unwilling to institute legal action against carriers doing business in the Commonwealth.
Plaintiff's attorneys were able to find ways around the statute through the use of the common law remedies of breach of contract as well as fraud and deceit. The courts, however, refused to acknowledge a cause of action in trespass for "bad faith". See D'Ambrosio v. Pennsylvania National Mutual Casualty Insurance Company, 494 Pa. 501, 431 A.2d 966(1981). Private lawsuits against insurance companies were permitted under the Pennsylvania Unfair Trade Practices Act and Consumer Protection Law, 73 P.S. 201 , (hereinafter referred to as the Consumer Protection Law). See Pekular v. Eich, 355 Pa. Super. 276, 513 A.2d 427(1986)."
Outcome: 08/02/2023 23 ORDER THAT DEFENDANTS MARKEL CORPORATION, EVANSTON INSURANCE COMPANY, AND ESSEX INSURANCE COMPANY ARE DISMISSED WITHOUT PREJUDICE PURSUANT TO FEDERAL RULE OF CIVIL PROCEDURE 4(M). THE CLERK OF COURT SHALL CLOSE THIS CASE. SIGNED BY HONORABLE JOSEPH F. LEESON, JR ON 8/2/23. 8/2/23 ENTERED AND COPIES MAILED TO UNREP AND E-MAILED.(mas) (Entered: 08/02/2023)
08/02/2023 (DOCKETED IN ERROR) Copy of Copyright form AO121 mailed to Register of copyright. (mas) Modified on 8/2/2023 (mas). (Entered: 08/02/2023)