PASADENA, Calif. - A lower court failed to consider whether an insured's alleged noncompliance with the disclosure requirements of Federal Rules of Civil Procedure 26(a) and 26(e) involved willfulness, fault or bad faith and whether sanctions were available that were less harsh than barring the insured from presenting its attorney fees evidence, the Ninth Circuit U.S. Court of Appeals ruled March 21, reversing and remanding the lower court's ruling in favor of an insurer on the insured's claim for bad faith (R & R Sails Inc. d/b/a Hobie Cat Co. v. Insurance Company of the State of Pennsylvania, Nos. 10-55115 and 10-55888, 9th Cir.; 2012 U.S. App. LEXIS 5866).
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