Groth v. State Farm Fire & Cas. Co., 2015 U.S. Dist. LEXIS 51031 (E.D. Pa. April 17, 2015)

Plaintiffs’ claims for statutory bad faith, violation of the Consumer Protection Law and loss of consortium were all dismissed by the court in this property damage case

The roof of the plaintiffs’ home was damaged and required replacement. The plaintiffs made a claim under their homeowners insurance policy with State Farm, and State Farm denied coverage due to “ongoing damage and neglect” of the roof. The plaintiffs appealed the decision, and State Farm again sent out two agents to re-inspect the damages. State Farm had told the plaintiffs to bring their own roofer; however, the agents allegedly would not allow the plaintiffs’ roofer to speak during the re-inspection. The agents determined that improper installation of the roof had allowed exposure to the elements, which resulted in rot, deterioration and mold. The plaintiffs disagreed and filed suit against State Farm on a variety of theories, including statutory bad faith, violation of the Consumer Protection Law (CPL) and loss of consortium. State Farm filed a motion to dismiss. With respect to the statutory bad faith claim, the court held that the plaintiffs failed to allege facts sufficient to sustain a cause of action for bad faith; thus, the bad faith claim was dismissed. State Farm also argued that the plaintiffs failed to allege facts sufficient to state a claim for violation of the CPL. The court agreed, and held that an alleged violation of the CPL cannot be based solely on the insurer’s decision to deny coverage; an affirmative act of misfeasance is required. Even if all of the statements made by State Farm’s employees had been deceptive, the plaintiffs failed to allege that they relied on those statements in any way. Thus, the CPL claim was also dismissed. Finally, the court dismissed the plaintiffs’ loss of consortium claim since they failed to allege that either plaintiff had been personally injured by State Farm’s actions.

Case Law Alerts, 3rd Quarter, July 2015

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