Policyholders and other insureds sued by their liability carrier for a declaration of no coverage contended "that Cornhusker [their liability carrier, which sued them for the declaration of no coverage for underlying claims] committed bad faith by commingling its defense and coverage files related to SQI's claim and by failing to produce its claims filed during discovery in this case. (See Def. Mot. at 2–3, 23–25.) Defendants provide no authority showing that either of these types of conduct constitutes bad faith, and the court has located none." Berkshire Hathaway Homestate Ins. Co. v. SQI, Inc., 132 F.Supp.3d 1275, 1293 (W.D. Wash. 2015).
In that case, the Federal District Court granted the carrier's motion for summary judgment, denied the insureds' motion for summary judgment, entered a declaratory judgment of no coverage, and dismissed the insureds' "extra-contractual" counterclaims including for alleged insurer bad faith.
Berkshire Hathaway has filed an appeal.
Please Read The Disclaimer. ©2016 by Dennis J. Wall, author of Litigation and Prevention of Insurer Bad Faith (3d ed. Thomson Reuters West in 2 Volumes, with Supplements). You are invited to visit the author's website here. All rights reserved.
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