Pa. Court Dismisses Homeowners' Tort Claims Against Insurance Carrier

PHILADELPHIA - A federal judge applied Pennsylvania's 'gist of the action' doctrine June 8 in dismissing tort claims brought by a homeowner against his insurer for declining to cover mold-related claims. Orrison v. Farmers New Century Insurance Co., No. 04-CV-1003 (E.D. Pa.).

Judge Padova of the U.S. District Court for the Eastern District of Pennsylvania declined to dismiss a bad faith count in a complaint by Daniel and Linda Orrison against Farmers New Century Insurance Co. The Orrisons' breach of contract claim was not at issue.

The Orrisons allege that Farmers New Century wrongfully declined to cover mold damage resulting …