Joseph M. Toddy Successfully Defends Insurer at Trial Against Bad Faith Allegations

Trial Counsel, Joseph M. Toddy, who was assisted by Robert H. Hayes prevailed in a bad faith trial in Lackawanna County, Pennsylvania arising from the denial of a total fire loss claim, with the Court entering judgment in favor of a mutual insurance company and rejecting allegations of bad faith.

The Court found that the denial of coverage was properly based on material misrepresentation concerning the nature and occupancy of the insured property. Evidence demonstrated that the lower level of the building had been converted into two additional rental units, increasing occupancy beyond the underwriting parameters under which the policy was issued.

The plaintiffs argued that the carrier knew, or should have known, about the renovations and change in occupancy based on prior exterior survey reports at the property. The Court rejected that theory and concluded that the Company had a reasonable basis for its coverage determination.

Joseph M. Toddy stated, “The Court carefully evaluated the record and concluded that the Company’s coverage determination was reasonable. We are pleased the Court recognized that the claim was handled appropriately and in good faith.”