Facts

Craig Mason sued Allstate Insurance Co.

PLAINTIFF'S CONTENTIONS:
Plaintiff alleged that defendant Allstate issued a policy to him for liability and underinsured motorist coverage, effective Sept. 28, 2010. On Nov. 8, he was involved in a head-on collision involving an underinsured motorist resulting in serious injuries. He received a $50,000 limit from the other driver's insurance carrier.

Next, he filed a claim with Allstate for underinsured motorist benefits, demanding the $250,000 policy limit. Allstate refused to pay the policy limits and, instead, offered to pay plaintiff $40,000. Plaintiff contended that the offer was way below the policy limit and the true value of his claim. Plaintiff's claim was arbitrated and the arbitrator awarded him $124,277 in policy benefits, which Allstate paid. Plaintiff then sued Allstate, alleging breach of contract and breach of the implied covenant of good faith and fair dealing.

DEFENDANT'S CONTENTIONS:
Allstate moved for judgment on the pleadings on the grounds that the breach of contract claim was barred because Allstate had paid the arbitration award and therefore no further policy benefits were owed, and Allstate contended that the bad faith claim was barred because the arbitration award was substantially less than plaintiff demanded, which established that there was a "genuine dispute" over the value of plaintiff's claim.

Result

The court granted Allstate's motion for judgment on the pleadings on plaintiff's breach of contract and bad faith claims. The court dismissed plaintiff's breach of contract claim with prejudice, but gave plaintiff time to amend his bad faith claim. Plaintiff did not amend the bad faith claim and the court entered judgment in favor of Allstate, accordingly.

Other Information

FILING DATE: July 9, 2013.