In the case of Smith v. Allstate Insurance Company, in the U.S. District Court Eastern District of Pennsylvania, Judge John R. Padova found that the plaintiff’s complaint adequately pleads bad faith on the part of Allstate in that its denials, delays, dilatory conduct, undervaluation, improper claim handling, failures to investigate, and failure to consider expert reports.
Plaintiff Marcella Smith commenced this action against Defendant Allstate Vehicle and
Property Insurance Company (“Allstate”), asserting claims for breach of a homeowners insurance policy and for bad faith conduct in violation of 42 Pa. Cons. Stat. Ann. § 8371.
Allstate moved to dismiss Count I, as to the plaintiff’s bad faith claim, arguing that it did not state a claim upon which relief could be granted.
Relevant Factual Background
On August 4, 2020, while the plaintiff’s policy was in effect, Hurricane Isaiah caused wind and water damage to her property. Allstate initially did not dispute the loss was covered under its policy.
