Insurance Coverage and Bad Faith
The lawyers at Houston Harbaugh have built a strong reputation over the past several decades representing insurance companies facing the full spectrum of complex legal challenges. No matter how big or critical the challenge, clients turn to the attorneys in Houston Harbaugh’s Insurance Coverage and Bad Faith practice group for our legal and business insights.
Pennsylvania Superior Court Finds Exclusion Of Stacking Void, Allowing The Insured To Stack UIM Benefits From The Policy From Which She Received The Liability Limits
In Erie Insurance Exchange v. Hannah Baluch, ___ A.3d ___, 2025 WL 22562 (Pa. Super. Ct., Jan. 3, 2025), the Pennsylvania Superior Court addressed whether an insured with...
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Supreme Court Of North Carolina Holds That Losses Caused By The COVID-19 Shutdown Orders Are Direct Physical Loss Covered By Commercial Property Insurance Policies
On December 13, 2024, the Supreme Court of North Carolina broke with the nationwide trend, holding that, absent a virus exclusion, commercial property insurance policies cover losses covered...
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Third Circuit Shuts Down Policyholder’s Requests for Insurance Coverage for COVID-19 Related Business Losses
Wilson et al v. USI Insurance Services, LLC, et al., In Wilson et al v. USI Insurance Services, LLC et al., No. 20-3124 (3d Cir. Oct. 8, 2024)...
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Insurers Not Required to Cover Climate Change Litigation
Aloha Petroleum, Ltd. v. National Union Fire Insurance Company of Pittsburgh PA, et al. Classifies Greenhouse Gases as Pollutants In a significant ruling, the Hawaii Supreme Court has...
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Pennsylvania Superior Court Holds That Employer’s Liability Exclusions May Not Bar Coverage For Asbestos Claims Of An Employee’s Spouse
Employer’s Liability Exclusions typically apply to claims for bodily injury to employees arising out of and in the course of their employment by the insured. But, to what...
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Supreme Court Of Pennsylvania in Ungarean Case Holds There Is No Coverage For Losses Caused By The COVID‑19 Shutdown Orders
On September 26, 2024, Pennsylvania joined the majority of jurisdictions nationwide in holding that commercial property insurance policies do not cover losses caused by the government shutdown orders...
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USEPA Announces Drinking Water MCLs for Certain PFAS.
On Wednesday, April 10, 2024, the U.S. Environmental Protection Agency (“EPA”) announced its first-ever legally enforceable drinking water standard to protect communities from exposure to harmful per-and polyfluoroalkyl...
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The Right to Be Wrong: Pennsylvania Superior Court finds no bad faith where an insurer’s coverage decision was incorrect but reasonable
On January 9, 2024, the Superior Court of Pennsylvania reaffirmed prior precedent that an erroneous insurance coverage decision is not in bad faith where “the insurer denied coverage...
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Third Circuit: Assault on a school bus did not have sufficient connection to use of the bus to trigger auto coverage
On September 22, 2023, the U.S. Court of Appeals for the Third Circuit held in a non-precedential opinion that an insurer had no duty to defend a school...
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Pennsylvania Superior Court: UM/UIM stacking waivers only need to be executed by the first named insured
On August 7, 2023, the Superior Court of Pennsylvania held that the Pennsylvania Motor Vehicle Financial Responsibility Law (“MVFRL”) only requires uninsured or underinsured motorist stacking waivers on...
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Third Circuit Confirms No “Occurrence” Under Pennsylvania Law for Poor Workmanship in Fracking Claim
In a May 31, 2023, precedential decision, the United States Court of Appeals for the Third Circuit confirmed that under well-settled Pennsylvania law, claims of poor workmanship do...
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Pennsylvania Supreme Court: household vehicle exclusions are enforceable to preclude UM/UIM auto coverage
On February 15, 2023, the Supreme Court of Pennsylvania held that household vehicle exclusions were “valid and enforceable,” and may be relied upon by auto insurers to exclude...
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Pennsylvania Supreme Court Addresses Whether Emotional Distress Constitutes Bodily Injury
In Lipsky v. State Farm, No. 24 EAP 2012, 2014 PA LEXIS 215 (Pa. Jan. 21, 2014), an equally divided Pennsylvania Supreme Court recently affirmed without opinion, the...
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Third Circuit Holds Insurer Entitled to Recoup Defense Costs from Insured Under Claims-Made Professional Liability Insurance Policy Where Expressly Permitted Under Policy
In CAMICO Mut. Ins. Co. v. Heffler, Radetich & Saitta, L.L.P., No. 13-3619, 2014 U.S. App. LEXIS 19636 (3d Cir. Oct. 10, 2014), the Third Circuit, in an unpublished...
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Caution Required in Drafting Additional Insured Provisions in Subcontract
In Kreamer v. Lobar (Carbon County 2015), the Court of Common Pleas found that subcontractor Chowns Fabrication and Rigging did not breach its obligation under its subcontract with general contractor...
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Verisk Develops New Coverage Options To Respond To Coronavirus
Verisk has developed two new optional endorsements for use with existing ISO commercial property business interruption coverage. The first form provides limited coverage in the event a business...
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Third Circuit Finds No Coverage For COVID-related Business Income Losses
In a January 6, 2023 precedential decision, the Third Circuit ruled in a consolidated appeal of 14 cases that Pennsylvania and New Jersey businesses are not entitled to coverage...
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Pennsylvania High Court to Consider Whether Wrongful Death Emotional Distress Damages May Be Included Under Bodily Injury Coverage For Liability Insurance Policies
On October 18, 2022, the Supreme Court of Pennsylvania granted allowance of appeal in Kramer v. Nationwide Property and Casualty Insurance Co. regarding the issue of whether the Superior...
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Pennsylvania Superior Court reaffirms invalidation of regular-use exclusion to preclude UIM coverage
On September 7, 2022, the Superior Court of Pennsylvania held in Jones v. Erie Insurance Exchange that “the regular-use clause of an insurance contract contravenes Section 1731” of the...
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Third Circuit: Pennsylvania auto insurers need not obtain new UIM election forms when a new vehicle is added to an existing policy
On September 29, 2022, the Third Circuit Court of Appeals held, as a matter of first impression, the Pennsylvania Motor Vehicle Financial Responsibility Law (MVFRL) only requires auto...
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Surety Cannot be Liable for Bad Faith Under PA Law
On September 1, 2022, the Superior Court of Pennsylvania held, as a matter of first impression, that a surety is not subject to Pennsylvania’s bad faith statute, 42 Pa.C.S.A....
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Pennsylvania High Court to Consider Whether Regular Use Exclusion Violates Statute
On June 27, 2022, the Supreme Court of Pennsylvania granted allowance of appeal in Rush v. Erie Insurance Exchange regarding the issue of whether the Superior Court erred...
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Houston Harbaugh Secures Win for Insurer on Prior Related Acts Clause
On June 17, 2022, Houston Harbaugh obtained judgment on the pleadings for The Charter Oak Fire Insurance Company when the U.S. District Court for the Middle District of...
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Wisconsin High Court Continues Trend of Finding No Business Interruption Coverage for Alleged COVID-Related Losses
On June 1, 2022, in a unanimous opinion, the Supreme Court of Wisconsin ruled that several restaurants were not entitled to business interruption insurance coverage for their alleged...
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First State Supreme Court Decision Holds No Business Interruption Coverage for Covid Shutdowns
On April 21, 2022, the Massachusetts Supreme Judicial Court affirmed the trial court’s decision that several restaurants were not entitled to business interruption coverage for losses resulting from...
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The State of Products Liability in Pennsylvania after Tincher – Part One
The Pennsylvania Supreme Court has, after decades of only tangentially addressing clear issues with the state products liability law in the Commonwealth, at last spoken. Since the Pennsylvania...
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Insuring for Deliberate Intent
AN EMPLOYER’S POTENTIALLY UNINSURED RISK: INSURANCE COVERAGE FOR DELIBERATE INTENTION CLAIMS As businesses throughout Pennsylvania are well aware, there exists a unique statutory provision that provides that employers...
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Pennsylvania Supreme Court Denies Request To Exercise “King’s Bench” Jurisdiction Over All State Court COVID-19 Coverage Cases
On May 14, 2020, the Pennsylvania Supreme Court, in Tambellini v. Erie Ins. Exch., 52 WM 2020, denied a policyholder’s application requesting that the Court exercise its extraordinary...
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An Overview Of How Pennsylvania Courts May Approach The “Physical Loss Or Damage” Requirement Of COVID-19 Business Interruption Claims
To the extent a Virus Exclusion is not contained in a business interruption policy via endorsement such that the virus may arguably constitute a Covered Cause of Loss...
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Insurers And Amici Resist Application For Pennsylvania Supreme Court’s Exercise Of King’s Bench Jurisdiction Over COVID-19 Coverage Cases
On May 7, 2020, Erie Insurance Exchange-along with AIG as an Amicus and several proposed Amici from the insurance industry-responded to a policyholder’s application for the Pennsylvania Supreme Court to exercise its...
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Supreme Court of PA Holds That an Increase in UIM Coverage Requires Auto Insurers to Offer Opportunity to Waive Stacking
In Barnard v. Travelers Home and Marine Ins. Co., 2019 WL 4686740 (Pa. Sept. 26, 2019), the Supreme Court of Pennsylvania held that an increase to the limits...
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Injured Worker Not a Borrowed Employee Entitled to Workers’ Compensation Coverage but a Leased Worker Under CGL Policy Leaving Facility Operator Uninsured
In Westfield Ins. Co. v. Astra Foods Inc., 2016 PA Super 31 (Pa. Super. Feb. 12, 2016) (opinion by Stabile, J.), the Superior Court of Pennsylvania held that...
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PA Superior Court Holds Statute of Limitations Begins to Run for Insurers’ Declaratory Judgment Actions When Insurer Has Sufficient Factual Basis to Support its Determination
The statute of limitations for the filing of a declaratory judgment action brought by an insurance company regarding its duty to defend and indemnify begins to run when...
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The State of Products Liability in Pennsylvania – Part Two
Since Berrier v. Simplicity Mfg., 563 F.3d 83 (3d Cir. 2009), the Third Circuit has been applying the Third Restatement articulation of a products liability design defect cause...
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No UIM Coverage for a “Driver” Listed in Policy Because She Was Not a Resident of the Named Insured’s Household
In Carter v. Peerless Idem. Ins. Co., No. 684 EDA 2014 (Pa. Super. Feb. 13, 2015) (Unpublished), the Superior Court of Pennsylvania affirmed a trial court’s finding that...
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Judge Wettick Explores the Scope of Regulatory Estoppel
In Sunbeam Corp. v. Liberty Mut. Ins. Co., 781 A.2d 1189 (Pa. 2001), the Pennsylvania Supreme Court adopted a strong application of regulatory estoppel. The question in Sunbeam...
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Court Permits Injured Party to File Declaratory Judgment Counterclaim Directly Against Tortfeasor’s Insurer
In Arrowood Indem. Co. v. Rosser Int’l, Inc., No. GD-10-018929 (Pa. C.P. Allegheny Dec. 30, 2014) (Wettick, J.), Judge R. Stanton Wettick, Jr. of the Court of Common...
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Alleged Assault and Battery Not Covered Under Homeowners Insurance Policy Because Not an “Occurrence”
In State Farm Fire & Cas. Co. v. Scalia, No. 1:14-cv-00049, 2014 U.S. Dist. LEXIS 170015 (M.D. Pa. Dec. 9, 2014) (Jones, III, J.), the U.S. District Court...
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Environmental Liability of Parent Corporations
In Trinity Industries v. Greenlease Holding Co., No. 08-1498, 2014 U.S. Dist. LEXIS 61223 (W.D. Pa. May 2, 2014), the U.S. District Court for the Western District of...
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Pennsylvania Supreme Court Holds Underinsured Motorist Insurer Entitled to Offset for Damages Recovered from All Tortfeasors
In AAA Mid-Atlantic Ins. Co. v. Ryan, 2014 Pa. LEXIS 196 (Pa. Jan. 21, 2014), the Supreme Court of Pennsylvania held that the amount of damages recoverable under...
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Middle District Decision Allows Insurance Company’s “Bad-Faith Setup” as Affirmative Defense to Pass Pleading Stage
In Shannon v. NY Central Mutual Ins. Co., No. 3:13-CV-1432, 2013 U.S. Dist. LEXIS 165280, (M.D.Pa. Nov. 20, 2013), the Middle District of Pennsylvania recently held that an...
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Middle District Decision Allows Insurance Company’s “Bad-Faith Setup” as Affirmative Defense to Pass Pleading Stage
In Shannon v. NY Central Mutual Ins. Co., No. 3:13-CV-1432, 2013 U.S. Dist. LEXIS 165280, (M.D.Pa. Nov. 20, 2013), the Middle District of Pennsylvania recently held that an...
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Surety not subject to claims for bad faith or breach of fiduciary duty
In a case of first impression, Judge Mark Hornak of the U.S. District Court of the Western District of Pennsylvania has determined, in an “Erie guess” that thePennsylvania...
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Pennsylvania Insurance Law 101–Insurance Company’s Responsibilities Under a Liability Insurance Policy: Duty to Defend and Duty to Indemnify
An insurance company’s responsibilities to its insureds are defined by the insurance contract, statutes and regulations. Case law further refines an insurer’s duties. The primary responsibilities of the...
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Text Messages Found Sufficient to Evidence Construction Contract
In February of 2016, the Court of Common Pleas of Northampton County issued its opinion in Dietrick v. Fulciniti, PICS Case No. 16-0370 (C.P. Northampton Feb. 18, 2016)...
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Pennsylvania Superior Court Holds Pennsylvania Unfair Trade Practice and Consumer Protection Law (UTPCPL) Does Not Guarantee Right to Jury Trial
In Fazio v. Guardian Life Insurance Co., 62 A.3d 396 (Pa. Super. 2012), Plaintiffs purchased various life insurance policies from Guardian Life Insurance over the course of four...
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About Us
We’re committed to staying on top of the issues of today and tomorrow, such as the ever-changing landscape involving bad faith, cyber-insurance, and insurance for advanced technology sectors, artificial intelligence players, machine learning companies, and autonomous vehicle manufacturers and users.
Alan S. Miller - Practice Chair
Alan has more than thirty-eight years of experience in complex litigation and counseling, concentrating in the areas of environmental law, insurance coverage and bad faith, and commercial litigation. He chairs the firm’s Environmental and Energy Law practice and the Insurance Coverage and Bad Faith Litigation Practice.
Alan’s environmental law practice has involved counseling, litigation and alternative dispute resolution of matters involving municipal, residual, and hazardous waste permitting and compliance, contribution and cost recovery actions under CERCLA and related state statutes, claims for natural resource damages, contamination from leaking underground storage tanks, air and water pollution regulatory permitting and enforcement actions, oil and gas drilling compliance and transactions, and real estate transactions involving contaminated and recycled industrial sites.
