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March v. Paradise Mut. Ins. Co.

March v. Paradise Mut. Ins. Co.

Superior Court of Pennsylvania

April 27, 1994, Argued ; July 11, 1994, FILED

NO. 03724 PHL 93

Opinion

 [*598]  [**1255]   OPINION BY HOFFMAN, J.:

This is an appeal from the October 26, 1993 order granting appellee's, Paradise Mutual Insurance Company, motion for summary judgment. Appellant, Lorraine R. March, presents the following questions for our review:

I. Whether a genuine issue of material fact exists as to whether [appellee] acted in bad faith toward [appellant], which under Pennsylvania law would preclude [appellee]  [*599]  from asserting the insurance policy's one-year suit limitation provision.

II. Whether [appellant's] cause of action under 42 Pa.C.S.A. § 8371 for [appellee's] bad faith conduct in adjusting [appellant's] property damage claim is subject to the insurance policy's one-year suit limitation provision.

Appellant's Brief at 3. For the reasons set forth below, we affirm in part and reverse in part.

The relevant facts, as set forth by the trial court, are as follows:

[Appellant] sued her insurance company [hereinafter "appellee"] for claims under her policy for water damage alleged to have occurred [***2]  on May 12, 1991 and wind damage alleged to have occurred on May 28, 1991. The suit was instituted on November 12, 1992, more than one year after the last alleged occurrence. 1 The policy provided on page 8, paragraph 8 thereof, "Suit Against Us. No action will be brought unless . . . the action is started within one year after the occurrence causing loss or damage."

[Appellee] pled Statute of Limitations in its New Matter. Thereafter, a motion for summary judgment was filed by [appellee] and such summary judgment was granted on October 26, 1993. 2 This appeal followed.

Trial Court Opinion, January 3, 1994, at 1.

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435 Pa. Super. 597 *; 646 A.2d 1254 **; 1994 Pa. Super. LEXIS 2205 ***

LORRAINE R. MARCH, Appellant v. PARADISE MUTUAL INSURANCE COMPANY

Subsequent History:  [***1]  Petition for Allowance of Appeal Denied March 15, 1995, Reported at: 1995 Pa. LEXIS 1578.

Prior History: Appeal from the Order entered October 26, 1993 in the Court of Common Pleas of Bucks County, Civil Division, at No. 92-010424-17-1. Before CLARK, J.

Disposition:  Summary judgment for appellee insurer was reversed and remanded. Although appellant insured's action for breach of the insurance contract was barred by the insurance policy's one-year suit limitation, appellant's statutory claim for bad faith in the settlement of her claim was a separate action that was not barred by the one year suit limitation.

CORE TERMS

bad faith, insurer, insurance policy, one-year, appellant's claim, bad faith claim, cause of action, insured's claim, summary judgment motion, statute of limitations, contract claim, new matter, grant summary judgment, insurance company, trial court, limitation provision, affirmative defense, trial court's order, underlying contract, insurance contract, insurance coverage, estoppel defense, summary judgment, one year, investigate, limitations, promulgated, occurrence, contends, coverage

Business & Corporate Compliance, Industry Practices, Unfair Business Practices, Claims Investigations & Practices, Contracts Law, Defenses, Affirmative Defenses, Statute of Limitations, Insurance Law, Claim, Contract & Practice Issues, Estoppel & Waiver, Effect on Investigations, Governments, Legislation, Statute of Limitations, General Overview, Time Limitations, Policy Coverage Issues, Commercial General Liability Insurance, Obligations of Parties, Settlements, Civil Procedure, Defenses, Demurrers & Objections, Estoppel, Responses, Waiver & Preservation of Defenses, Criminal Law & Procedure, Commencement of Criminal Proceedings, Double Jeopardy, Res Judicata, Torts, Contributory Negligence, Denial of Allegations, Judgments, Preclusion of Judgments, Limits on Application, Intentional Torts, Remedies, Penalties, Liability & Performance Standards, Bad Faith & Extracontractual Liability, Good Faith & Fair Dealing