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Pennsylvania District Judge Denies Motion To Dismiss And Transfer Pennsylvania Bad Faith Case To DelawareOn March 4, 2009 Judge Yohn in the Eastern District of Pennsylvania denied an insurance company's Motion to Dismiss and Motion to Transfer venue in Godfry v. State Farm Mutual Insurance Company, The Plaintiff Jameson Godfry (Godfry) was involved in a car accident with an uninsured motorist which occurred in Delaware. He pursued his uninsured motorist claim in the Court of Common Pleas of Philadelphia County. After 2 settlement conferences the impartial evaluation by 2 separate judges was made at $35,000. State Farm Mutual Insurance Company offered $7,500. A jury awarded a verdict of $50,000 and Godfry filed a separate suit against State Farm for bad faith under Section 8371 in Pennsylvania state court which was removed to federal court. State Farm then sought to dismiss the case and have it transferred to Delaware by arguing that Delaware law applies and the venue should be Delaware for the the convenience of the parties.
Judge Yohn from the Eastern District of Pennsylvania denies both of State Farm's Motions. First, he finds that their is a true conflict of law between Pennsylvania and Delaware for bad faith, mainly because Delaware does not allow for attorney fees but Pennsylvania law does in Section 8371. Then he undertakes a contact analysis evaluation and finds that even though the contract was issued and negotiated in Delaware that sufficient events occurred in Pennsylvania (i.e. settlement conference, trial) so Pennsylvania has a "significant relationship" with the bad faith claim.
Second, he denies the Motion to Transfer venue noting that the Plaintiff's choice of venue deserves deference. Also, there are no special circumstances which required a transfer of venue. Thus, the case remains in Pennsylvania Federal Court and is not dismissed and/or transferred to Delaware.
Scott B. Cooper
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