Insured’s Bad Faith Claim Survives Where Two Adjusters Took Opposite Coverage Positions

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Motor home storm damage

This is the case of Moravia Motorcycle, Inc. v. Allstate Insurance Company, in the U.S. District Court Western District of Pennsylvania.

The plaintiffs commenced this action in July 2021 in the Court of Common Pleas of Lawrence County, Pennsylvania. However, Allstate moved for a change of venue and the case was transferred to the District Court Western District of Pennsylvania based on diversity jurisdiction; at the same time, Allstate filed a partial motion to dismiss.

Plaintiffs Moravia Motorcycle, Inc. and Thomas and Deborah McKinney filed their lawsuit against Allstate Insurance Company (“Allstate”), seeking benefits under an insurance policy for damage to their motor home.

Plaintiffs seek the policy limits of $100,000, plus damages for bad faith and treble damages under the Pennsylvania Unfair Trade Practices and Consumer Protection Law (“UTPCPL”).

Relevant Factual Background

The Plaintiffs own a 2008 Coachman motor home which was insured with Allstate. The motor home was parked at the plaintiff’s property in Chesterfield, South Carolina.