Pennsylvania Federal Court Finds Homeowner Was Due Coverage – Bad Faith Claim Survives Summary Judgment

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This is the case of Michalek v. Nationwide Mutual Fire Insurance Company, U.S. District Court Western District of Pennsylvania No. CV 19-351, 2022 WL 1046440.

This case was filed in 2019, by Plaintiff, Mark Michalek alleging that Nationwide improperly denied coverage for water damage that it said was considered “foundation seepage” and therefore excluded from coverage.

The Plaintiff brought a breach of contract and bad faith complaint against Nationwide, who then moved for summary judgment on both claims, arguing that no coverage was due under the policy, and that there was no bad faith because the coverage denial was reasonable.

On April 7, 2022, the court entered its decision, finding that there could have been coverage for most of the plaintiff’s losses, and denied most of the Nationwide’s breach of contract summary judgment motion.

As to the claim of bad faith, Western District Judge Flowers Conti remarked in her decision, that Nationwide’s motion for summary judgment on the bad faith claim was wholly dependent upon [it] obtaining summary judgment on the breach of contract claim.