Insurance
Aug. 13, 2009
An Ongoing Dispute
Both sides in insurance bad faith litigation need to continue monitoring developments to the genuine dispute doctrine.
A cause of action for a tortious breach of the implied covenant (aka "the bad faith tort") can be stricken, regarding a legal or a factual controversy, if the insurer proffers a legally appropriate rationale for its position, whether ultimately correct or not. See, e.g., Chateau Chamberay Homeowners Association v. Associated International Insurance Co., 90 Cal.App.4th 335 (2001), which many consider the seminal decision in this area. Usually by means of a motion for summary adjudication ...
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