Superior Court Issues a Sweeping Decision

On April 17, 2012, the handed down a sweeping decision that broadly interprets under Section 8371. In Berg v. , the emphasized that “bad faith” in is actually quite broad, and it found that evidence that the insurance company paid defense counsel just under $1 million dollars was evidence that supported bad faith.

In Berg, the Plaintiffs alleged that Nationwide had “repaired” a vehicle, knowing that it still had structural damage. The Superior Court also said that Plaintiffs alleged that Nationwide paid “$922,654.25 to defend the , allegedly pursuant to a documented litigation strategy to deter the filing of small value claims.” The trial court had granted Nationwide’s motion for a directed verdict. It relied on longstanding, but narrow, definitions of bad faith from early cases.

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