1. Property Law: A Year in Review
Cristin A. Cavanaugh, Esq.
Marshall Dennehey Warner Coleman & Goggin
2000 Market Street, Suite 2300
Philadelphia, PA 19103

2. Topics Bad Faith Surface Water Vacant Property
Material Misrepresentation
Assignment
Appraisal

3. Statutory Bad Faith 42 Pa.C.S. § 8371: Actions on insurance policies.
In an action arising under an insurance policy, if the court finds that the insurer has acted in bad faith toward the insured, the court may take all of the following actions: 
Award interest on the amount of the claim from the date the claim was made by the insured in an amount equal to the prime rate of interest plus 3%.
Award punitive damages against the insurer.
Assess court costs and attorneys fees against the insurer.
There is a 2 year statute of limitations

4. Legislature Didn’t Define Bad Faith The Courts Did
Insurer lacked reasonable basis for denying benefits
Insurer knew or recklessly disregarded its lack of reasonable basis

5. Bad Faith Easy to Plead / Hard to Prove
Bad faith claims are fact specific and depend on the conduct of the insurer vis a vis the insured.
Any frivolous or unfounded refusal to pay proceeds of a policy
It is not necessary that such refusal be fraudulent.
Such conduct imports a dishonest purpose and means a breach of a known duty (i.e. good faith and fair dealing)
Through some motive of self-interest or ill will
Mere negligence or bad judgment is not bad faith.

6. Noteworthy Bad Faith Cases
Dougherty v. Allstate Prop. and Cas. Ins. Co., 185 F.Supp.3d 585 (E.D. Pa. 2016)
Yatonsky v. State Farm Fire & Cas. Co., 2016 U.S. Dist. LEXIS (M.D. Pa. 2016)
Wehrenberg v. Metropolitan Prop. and Cas. Ins. Co., 2:14-cv (W.D. Pa. Jan. 10, 2017)
Gowton v. State Farm Fire and Cas. Co., et al., No , 2017 U.S. Dist. LEXIS (W.D. Pa. 2017)
Long v. Farmers New Century Ins. Co., No (E.D. Pa. March 30, 2017)
Rancosky v. Washington National Ins. Co., No. 124 WAL 2016 (Aug. 30, 2016)

7. First Party Property Cases
Surface Water
The Ridgewood Group, LLC v. Millers Capital Ins. Co., No EDA 2016 (Feb. 28, 2017) (Non-Precedential Opinion)
Vacant Property
Mannino v. Westfield Ins. Co., Civ. A. No (E.D. Pa. Nov. 7, 2016)
Village Heights Condominium Assoc. v. The Cincinnati Ins. Co., 4:16-cv-554 (M.D. Pa. Feb. 10, 2017)
Material Misrepresentation
Payne v. Allstate Ins. Co., et al., No (E.D. Pa. Nov. 22, 2016)

8. First Party Property Cases (cont'd)
Assignment
Charbonneau v. Chartis Prop. Cas. Co., No , U.S. Court of Appeals, Third Circuit (Feb. 23, 2017)
Appraisal
The Windridge of Naperville Condiminium Assoc. v. Philadelphia Indem. Ins. Co., 16 C 3860 (NE.D. of Illinois) (Memorandum Opinion Jan. 26, 2017)
Matter of Joseph Pottenburg v. Dryden Mut. Ins. Co., 2017 NY Slip Op (Feb. 28, 2017)
Long v. Farmers New Century Ins. Co., No (E.D. Pa. March 30, 2017)

9. Cristin A. Cavanaugh, Esq. Marshall Dennehey Warner Coleman & Goggin
Thank You!
If you need more information
or have additional questions,
please contact:
Cristin A. Cavanaugh, Esq.
Marshall Dennehey Warner Coleman & Goggin
2000 Market Street, Suite 2300
Philadelphia, PA 19103