Pa. Supreme Court Ruled That Insurance Company's Bad Faith Refusal to Settle Claim Breached Contractual and Fiduciary Duty

[Editor's Note: Although this decision does not result from a mold dispute, HarrisMartin editors feel it could have an impact on the future of mold-related bad faith claims.]

PHILADELPHIA - The Supreme Court of Pennsylvania affirmed the Superior Court's decision that where an insurer refuses to settle a claim that could have been resolved within policy limits, without the belief that it has a good possibility of winning, it breaches its contractual duty to act in good faith and its fiduciary duty to its insured. This makes the insurer liable for the compensatory damages of its insured that flow from …