Granted in part and denied in part: defendant’s motion to dismiss; plaintiffs’ bad faith claim would be held in abatement, pending resolution of breach of contract count

The plaintiffs were involved in an automobile collision and subsequently submitted a claim for UM benefits to their insurer, alleging that an uninsured motorist had caused the injuries. The plaintiffs claimed that the defendant failed to timely pay claims made under the UM policy. They sued for breach of contract, bad faith, and declaratory relief on liability and damages. The defendant moved to dismiss the bad faith and declaratory relief causes of action on the basis that the bad faith claim had not yet accrued because the underlying first-party liability had not yet been resolved and because declaratory relief on liability and damages do not concern justiciable cases or controversies. The plaintiffs argued that abatement, as opposed to dismissal, was appropriate. The court denied the defendant’s motion to dismiss the bad faith claim and, instead, held that it would be abated pending resolution of the breach of contract count. With respect to the declaratory judgment count, the court held that it did not currently address actual existing controversies that would support the entry of a declaratory judgment. Thus, the declaratory judgment count was dismissed, with prejudice.

_{Case Law Alerts, 3rd Quarter, July 2015}

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