Judge: Investigation Of Unique Labor Violation Claim Defeats Bad Faith Count

SEATTLE - Even though a Washington federal judge on Nov. 1 determined that an insurer should have provided coverage for a contractor's claim related to a penalty from an alleged labor code violation, the judge found that the unique scenario presented by the claim and the insurer's thorough investigation precluded a finding of bad faith (Bayley Construction v. Great American E&S Insurance Co., No. 2:13-cv-00114, W.D. Wash.; 2013 U.S. Dist. LEXIS 157279).

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