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District Court Denies Motion To Strike Allegations That Underinsured Motorist Carrier Violated Fiduciary Obligations
On April 14, 2009 the Western District of Pennsylvania federal court denied two Motions to Strike in Thomas v. State Farm Mut. Auto. Ins. Company. The case arises out of a car accident where the insured settle her third party claim for $25,000 and made an underinsured motorist demand of $100,000. State Farm made an offer of $31,500 and attempted to say that it was a "partial payment". Since the policy did not provide for arbitration, a case was filed in court alleging breach of contract and bad faith. One part of the breach of contract allegation was the breach of fidicuary duty. Also, in the bad faith count an allegation was made that the corporate scheme to make a "partial payment" is bad faith. Thomas sought attorneys fees and punitive damages as part of the breach of contract claim.
Judge Bissoon denies both of State Farm's Motions to Strike and finds that under the facts and allegations of the Complaint their may be a breach of fiduciary duty and also a reason to seek attorney fees and punitive damages, separate than the bad faith claim. For a complete copy of the Order contact Scott Cooper at Schmidt Kramer at 1-800-232-6301.
Scott B. Cooper
717-232-6300
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