The Federal Court for the Middle District of Pennsylvania denied an unopposed Motion to Dismiss on October 16, 2008 in Derocher v. Zurich American Insurance Company. This case arises out of a breach of contract and bad faith lawsuit filed after the Plaintiff Derocher was awarded $600,000 in an uninsured motorist proceeding.
The Plaintiff was driving her employers vehicle when the car accident occurred and the other driver was ultimately uninsured. Her employer's vehicle had $1 million of uninsured motorist coverage (UM). The plaintiff made a demand for settlement of $375,000 and a counter-offer by the insurance company was made of $150,000. The award by the arbitrators was $600,000 and the Plaintiff filed suit against the insurance company after it refused to pay the award when the Plaintiff would not sign a full release.
The insurance company filed a Motion to Dismiss which was actually unopposed and the Court decision still denies the Motion to Dismiss. The Court finds that the allegations in the complaint are sufficient to state "a plausible claim and presents a reasonable expectation that discovery will reveal evidence of an insurance contract between the Plaintiff and Defendant" on both the breach of contract and bad faith claims. Thus, even though the Plaintiffs may not prevail on the ultimate claim their is a proper basis to proceed and the Motions to Dismiss are denied.
See the following links on more information about uninsured and underinsured motorist coverage here and here and here and here.
Thanks to Attorney Scott Cooper for this information.