Superior Court Issues a Sweeping Decision

On April 17, 2012, the of handed down a sweeping decision that broadly interprets under Section 8371. In Berg v. , the Superior Court emphasized that “” in Pennsylvania is actually quite broad, and it found that evidence that the 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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