... AND MORE.
In the case of G&S Metal Consultants, Inc. v. Continental Cas. Co., No. 3:09-CV-493 JD, 2016 WL 4095608, at *13 (N.D. Ind. August 2, 2016), the District Court did not use the words but effectively and totally rejected the policyholder's "bad faith" claim under Indiana law because Indiana law does not recognize either a "continuing bad faith" theory or a theory of "bad faith" based on litigation conduct, theories which are available in other jurisdictions:
Conduct that occurs after the filing of a bad faith claim, or in the case of a claim denial after the insurer's denial of the claim, is irrelevant to evaluating a bad faith claim. (Citation omitted.) Here, regardless of whether GSMC describes Continental's position as a “claim denial” or otherwise, years have passed since Continental rejected GSMC's business interruption coverage demands and GSMC filed its bad faith claim.
While these bad-faith theories got relatively short shrift under settled Indiana law, this case also presented coverage issues involving appraisal, fraud, and business interruption coverage including the period of restoration and issues concerning new customers. The District Court granted the insurance carrier's motion for summary judgment in part on the policyholder's bad faith claim, and denied the policyholder's motion for summary judgment "on the BIEE ["business income and extra expense coverage"] Form." G&S Metal Consultants, Inc. v. Continental Cas. Co., No. 3:09-CV-493 JD, 2016 WL 4095608, at *13 (N.D. Ind. August 2, 2016).
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