This follows an article featuring North Carolina law published here on Wednesday, July 7, 2021, NORTH CAROLINA BUCKS THE TRENDS, OR DOES IT?
"In Wisconsin, bad faith is a tort 'separate and apart from a breach of contract.'" Greystone Condo. at Blackhawk Owners Ass'n v. Amguard Ins. Co., No. 19-cv-768-slc, 2021 WL 168971, at *5 (W.D. Wis. Jan. 19, 2021) (Crocker, USMJ).
Insurance bad faith under Wisconsin law is a separate wrong from a breach of contract. It is an intentional tort, which is founded on a breach of duty rather than simply a breach of contract. The duty is that of good faith and fair dealing because of the relationship that exists between insurance carrier and policyholder, between insurer and insured, under their insurance contract. "[A]s such, separate damages may be recovered for bad faith and for breach of contract." Greystone Condominium, 2021 WL 168971, at *5.
Not being dependent on a breach of contract, bad faith is actionable under Wisconsin law regardless of whether the carrier has breached the insurance contract, or not.
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