It has been held under Pennsylvania's Bad Faith Statute,[1] that a bad faith claim may not always depend on the outcome of a breach of contract claim: "Under those circumstances, especially when the bad faith claim is not solely based upon a denial of coverage, a bad faith claim is not contingent on the underlying breach of contract claim."[2]
[1] 42 Pa. Cons. Stat. Ann. § 8371.
[2] In re Lewis (Lewis v. U.S. Bank Nat'l Ass'n), 627 B.R. 602, 617 (E.D. Pa. Bankr. 2021).
ASIC has been a very large provider of force-placed insurance policies; it was the subject of the insurance-related claims in this case. The most frequently alleged claims and causes of action in force-placed insurance cases, including cases involving alleged bad faith, are discussed in 2 DENNIS J. WALL, LITIGATION AND PREVENTION OF INSURER BAD FAITH § 9:35 (3d Edition West Publishing Company, 2023 Supplements in process).
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