In Lindfors v. State Farm Mut. Auto. Ins. Co., No. 3:20-cv-00178-SLG, 2021 WL 6125771, at*2 (D. Alaska December 28, 2021), a federal district court granted a carrier's motion for partial summary judgment that the policyholder-plaintiff could not recover damages for emotional distress she incurred because of the litigation itself. The Court was particularly persuaded by the fact that the Supreme Court of the forum state had not definitively ruled on the issue.
On the other hand, damages are available in the policyholder's bad-faith lawsuit for stress resulting from delay of sums allegedly due to her under the policy at issue, including delay during the time of the bad-faith litigation. Lindfors, 2021 WL 6125771, at *3.
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