Judge Dodge said “Plaintiffs have not met this standard. Rather, they merely allege that Allstate failed to review its file appropriately, wrongfully denied payment that it knew was owed, required Plaintiffs to incur costs and legal fees in obtaining what is rightfully theirs, and failed to use due care in handling the claim. These allegations are insufficient to support a claim of bad faith.”
However, even in the face of this rebuke, the court still gave the plaintiff a lifeline to bring their bad faith claims against Allstate back before the court, stating:
“Plaintiffs have requested leave to amend. As the Court cannot conclude that amendment would be futile, Allstate’s motion to dismiss will be granted without prejudice and with leave to amend.”
