... But -- if there is a separate legal duty, not just separate conduct apart from the breach of contract, then tort Damages may be available under Michigan law.
It has been firmly held that the Michigan Courts simply do not recognize a cause of action in tort for alleged Bad Faith breach of an Insurance contract, including any separate and independent tort for alleged Bad Faith failure to pay the Insured's own First-party claim, as in the case of Cromer v. Safeco Insurance Co. of Am., Download Cromer v. Safeco Insurance Co. of America (E.D. Mich. Case No. 2.09cv13716, Opinion and Order Filed April 14, 2010) also published as 2010 WL 1494469 *3 (E.D. Mich. April 14, 2010)(Westlaw subscription required to access Westlaw).
But, if there is a separate legal duty that has been breached apart from the alleged breach of contract, then in that event Michigan law may recognize an action for Tort Damages. Old Republic National title Insurance Co. v. Escrow and Title Services, Inc., Download Old Republic National Title Insurance Co. v. Escrow and Title Services, Inc. (W.D. Mich. Case No. 1.08cv796, Opinion and Order Filed June 30, 2010) also published as 2010 WL 2650434 *8-*16 & *8 n.4 (W.D. Mich. June 30, 2010)(Westlaw subscription required to access Westlaw)(recognizing rule; holding that the rule did not apply to alleged negligence claim at bar involving agency contract to issue Title Insurance Policies).
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