In a Federal Court in North Carolina, a shopping mall owner is exploring the boundaries of claim investigation and denial. The mall owner sued under a "business policy" after its Claim was denied. The mall owner claimed Property Damage from Wind. Download Lenoir Mall, LLC v. State Farm Fire and Casualty Co. (W.D.N.C. Case No. 5.10cv40, Memorandum and Order Filed August 23, 2011) PUBLIC ACCESS, also published as 2011 WL 3682794 (W.D.N.C. August 23, 2011)(authorized password required to access Westlaw).
In Federal Court, the shopping mall owner filed a Claim against the "Business Insurance" Company for alleged Bad Faith Settlement Practices, among other things. "North Carolina recognizes the tort of bad faith settlement practices. [Citation omitted.] The elements of a claim for bad faith settlement practices are: (1) “a refusal to pay after recognition of a valid claim; (2) ‘bad faith;’ and (3) aggravated or outrageous conduct.” Lenoir Mall, LLC v. State Farm Fire & Cas. Co., 2011 WL 3682794 at *2.
The Plaintiff shopping mall owner and Policyholder failed to allege a legally sufficient refusal of the Insurance Company to recognize a valid claim and refusal to pay the Claim. Accordingly, the Common Law First-Party Bad Faith Claim was dismissed in this case. Id.
The Federal Court's Opinion in this case also presents an illuminating discussion of the differences and interplay between North Carolina's "general" Unfair Trade Practices Act and its "insurance-specific" Unfair Claims Practices Act. That discussion is dicta, however, in that the Insurance Company's Motion to Dismiss was not directed to Plaintiff's Statutory Claims in this case. See id. at *3 & n.1.
The 22nd Annual Bad Faith Litigation Conference of the American Conference Institute is being held in 2011 in Orlando, Florida. The author will be speaking. As a result, the ACI will offer you a large discount if you choose to register for the Conference. In order to register and receive this discount from the ACI, contact Amanda Waltmon, Esquire, Legal Analyst and Program Director at the ACI and the deadline most recently announced by the ACI for requesting this discount is August 31, 2011. Ms. Waltmon's direct dial is 212.352.3220, ext. 5231 or send Ms. Waltmon an EMail at a.waltmon@americanconference.com. Here is a link to the American Conference Institute Website Page which features this Conference including registration, if you or someone you know would like to attend.
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