QUICK NOTE: THIRD-PARTY CAN BRING COMMON LAW BAD FAITH CLAIM

A third-party claimant may bring a common law bad faith claim against a defendant’s liability insurer.   Mccullough v. Royal Caribbean Cruises, 2019 WL 2076192, *2 (S.D.Fla. 2019).  “A bad faith claim may be brought by a third party absent an assignment from the [defendant] insured.”  Id.   This can only be done in the third-party bad faith context with the argument that the insurer’s “bad faith” conduct resulted in a judgment against the defendant-insured in excess of the policy limits.  However, in any third-party bad faith claim (and, really, bad faith claim in general), coverage must first be determined under the policy.   Mccullough, supra. (“An injured third party must therefore first obtain a resolution of some kind in favor of the insured’ on the coverage issue” before pursuing his bad faith against the insurer.”) (internal quotations omitted).

 

Please contact David Adelstein at dadelstein@gmail.com or (954) 361-4720 if you have questions or would like more information regarding this article. You can follow David Adelstein on Twitter @DavidAdelstein1.

Spread the love
Posted in Insurance and tagged , , .