42 Pa. Cons. Stat. § 8371

Section 8371 applies to alleged bad-faith conduct after its effective date even when the insurance contract and accident predate it.

Henry v. State Farm Insurance · filed 1992-03-24

Defendant argues that since this statute was not in force when the contract was formed, nor when the accident took place, it cannot apply to this case. It is true that this statute, enacted on February 7, 1990, became effective 60 days later, approximately three months before the alleged bad-faith conduct giving rise to this suit. ... Viewed in the light most favorable to the plaintiff, as they must be at this juncture, these allegations of bad faith suffice to survive defendant’s motion to dismiss.

Section 8371 requires a bad faith complaint to allege insurer conduct occurring after July 1, 1990.

Taube v. Erie Insurance Exchange · filed 1993-02-03

However, in order to state a cause of action for bad faith under section 8371, the complaint must allege conduct on the part of the insurer occurring after July 1,1990.

Section 8371 applies to insurance policies regardless of when they were entered into, but evidence of bad faith conduct before July 1, 1990 cannot establish a claim.

Shields v. National Union Fire Insurance (In Re Lloyd Securities, Inc.) · filed 1993-02-26

Thus, § 8371 can be applied to the instant insurance policy. ... Accordingly, we find that plaintiff is precluded from presenting any evidence of NUFIC’s alleged bad faith which occurred prior to July 1, 1990.

Section 8371 can apply to post-enactment bad faith conduct under a policy issued before the statute took effect.

Okkerse v. Prudential Property and Casualty Insurance Co. · filed 1993-05-04

Herein, appellee’s obligations under the policy issued prior to the effective date of section 8371 have not been changed. Section 8371 also does not affect either the terms of the insurance contract or the vested rights thereunder. It merely prohibits an insurer from engaging in a bad faith refusal to pay benefits due under the policy.

Section 8371 applies to insurance contracts entered before July 1, 1990, when the bad faith conduct occurred after that date.

Adamski v. Allstate Insurance Co. · filed 1999-09-22

Finally, as the parties acknowledge, section 8371 applies to insurance contracts entered prior to the statute’s effective date, July 1,1990, so long as the bad faith conduct occurred after that date.

Section 8371 requires clear and convincing proof of bad faith, and summary judgment is proper absent evidence from which a factfinder could find bad faith.

Kearns v. Minnesota Mutual Life Insurance · filed 1999-11-29

Because the statute does not contain a definition of bad faith, Pennsylvania courts have applied the definition set forth in Black’s Law Dictionary: ... At trial, plaintiff must prove bad faith by clear and convincing evidence, and thus his burden of producing evidence in support of his claim at summary judgment is substantial. ... Furthermore, in light of the fact that plaintiff has not produced evidence from which a rational trier of fact could find that Minnesota Mutual acted in bad faith, the motion of Minnesota Mutual for summary judgment will be granted on plaintiffs bad faith claim.

A § 8371 bad faith damages claim may be dismissed under reasoning established in an earlier decision addressing the same claim.

Griffin v. Allstate Insurance · filed 1999-11-29

Plaintiffs’ claim for damages resulting from the defendant’s bad faith under 42 Pa.C.S. §8371 is identical to the claim which this court addressed in the Garcia memorandum and order’s footnote number four. The bad faith claim in Garcia was dismissed. For the reasons given in that memorandum and order, the claim by plaintiffs in the case sub judice is dismissed as well.

Section 8371 provides a remedy for insurers’ bad faith, including bad faith conduct during litigation.

Krisa v. Equitable Life Assurance Society · filed 2000-05-23

The purpose of section 8371 of 42 Pa. C.S.A. is to provide a remedy for the bad faith conduct of insurers. Section 8371 should be construed broadly so as to effectuate its purpose. Consistent with this principle, the Pennsylvania Superior Court has recognized that the conduct of an insurer during the pendency of litigation may be construed as evidence of bad faith under Section 8371. I find this reasoning persuasive. Accordingly, Equitable’s motion to strike and dismiss Krisa’s bad faith claim based on its contention that Krisa can not maintain a bad faith claim against Equitable for its conduct as a legal adversary will be denied.

Section 8371 does not cover an insurer’s conduct after a settlement or judgment.

Ridgeway v. U.S. Life Credit Life Insurance · filed 2002-02-28

Based on the foregoing, we hold that the scope of Section 8371 does not include post-judgment or post-settlement conduct by an insurer.

A § 8371 bad faith claim may survive summary judgment when pending expert discovery bears on whether the insurer’s denial of coverage was reasonable.

O'Connor v. Progressive Advanced Insurance Company · filed 2024-10-01

In any event, it is difficult to determine whether Progressive’s response was reasonable without also ruling on whether O’Connor has created a genuine dispute of fact as to the value of damage to his car. So the Court will deny Progressive’s motion for summary judgment on O’Connor’s insurance bad faith claims, without prejudice to raise them again following the conclusion of expert discovery.

Section 8371’s bad faith standard is not void for vagueness, and its punitive damages provision satisfies due process.

W.W. Management & Development Co. v. Scottsdale Insurance · filed 1991-07-24

Based on these similarities between the terms “good faith” and “crimes against nature,” and the relatively lenient vagueness inquiry that applies to section 8371, I hold the Pennsylvania statute is not void for vagueness. ... In light of these safeguards and their similarity to the ones the Supreme Court explicitly approved in Pacific Mutual, I hold section 8371’s punitive damages provision satisfies due process.

Section 8371 permits assignment of a bad faith claim only to an injured plaintiff and judgment creditor.

Feingold v. Palmer & Barr · filed 2020-12-24

Wolfe does not extend permission to assign bad faith claims under 42 Pa.C.S. § 8371 beyond assignments “to an injured plaintiff and judgment creditor.”

An insured may assign a Section 8371 claim for punitive damages, counsel fees, and interest.

Brown v. Candelora · filed 1998-01-30

Under Pennsylvania law, as well as in the majority of American jurisdictions [8] , an insured's claims against his or her insurer, in the nature of breach of contract, breach of fiduciary duty, and bad faith, as well as claims under Section 8371 of the Judicial Code for punitive damages, counsel fees and interest, are assignable.

A third party judgment creditor cannot pursue an insured’s Section 8371 bad faith claim against the insurer without an express assignment from the insured.

Marks v. Nationwide Insurance Co. · filed 2000-11-13

Pennsylvania law prohibits a plaintiff, as a judgment creditor, from maintaining an action against the insurer of the tortfeasor on bad faith claims when those claims have not been expressly assigned by the tortfeasor and when any bad faith claim against the insurer has been expressly rejected by the tortfeasor.

Section 8371 requires an insured to prove by clear and convincing evidence that the insurer lacked a reasonable basis for denying benefits and knew or recklessly disregarded that lack of a basis.

Kilmer v. Connecticut Indemnity Co. · filed 2002-02-28

Under Pennsylvania law, in order to recover on a claim of bad faith, the insured must show, by clear and convincing evidence, that the insurer did not have a reasonable basis for denying benefits under the policy and that the insurer knew of or recklessly disregarded its lack of a reasonable basis in denying the claim.

Section 8371(3) includes attorney’s fees as compensatory damages when calculating punitive damages.

Davis, R. v. Fidelity Natl. Title · filed 2015-03-18(3)

Additionally, we note that attorney’s fees are specifically included ... as compensatory damages in the bad faith statute. See 42 Pa.C.S. § 8371(3).