Insurance Coverage & Bad Faith
The Firm conducts a full array of insurance coverage litigation and counseling including both casualty and property claims, including automobile, homeowners, commercial general liability, excess/umbrella, employment practices and other insurance policies. The Firm also defends against insurers for bad faith, and conducts investigations and defends cases involving arson, fraud, material misrepresentation and other insured misconduct.
Recent Cases
- J.R. Murphy obtained summary judgment in the case of Progressive Halcyon Insurance Company v. Paige Cline, civil action number 4:05-842-25, United States District Court before the Honorable Terry Wooten. The issue before the Court was whether the adult, emancipated daughter of the named insured who, was listed as an insured driver on the vehicle but did not reside with the named insured, was entitled to UIM coverage under the vehicle while riding as a passenger in a non-owned vehicle. The defendant argued that she temporarily resided in her father’s home immediately prior to the accident, but the Court found that neither her status as a listed driver nor the fact that she occasionally resided in her father’s home prior to the accident qualified her as a Class I insured under the policy.
- J.R. Murphy obtained summary judgment in the case of Progressive Specialty Ins. Co. vs. Abraham Murray, Perry Capers and Mark A. Gadsden, civil action number 2:06-161-DCN, which was pending in United States District Court before the Honorable David Norton. The Court found that an employee who violated the terms of permission granted to him by his employer could not convey permission to a third party to operate the vehicle, thereby preventing liability coverage for the injuries sustained by a passenger. The Court then went on to find that the passenger, who likewise did not have permission of the named insured to use or occupy the vehicle, did not qualify as a permissive user or “guest” under South Carolina Code §38-77-130(7) to entitle him to uninsured motorist coverage under the same policy, distinguishing this case from the recent South Carolina Court of Appeals decision in Unisun Ins. Co. v. Schmidt, 339 S.C. 362, 367, 529 S.E.2d 280 (2000).
- Adam Neil obtained summary judgment in favor of Scottsdale Insurance Company in the United States District Court for the District of South Carolina in a breach of contract and bad faith action against the company. The case involved an allegedly defective swimming pool which was constructed by Scottsdale insured for the plaintiff. Prior to the trial of the underlying construction defects case, Scottsdale withdrew its defense of the insured. The insured put only a nominal defense at the trial of the case (which was conducted non-jury) and the Trial Court issued an Order against Scottsdale’s insured and entered a judgment in favor of the plaintiffs. In exchange for a Covenant Not to Execute, the insured signed its rights under the insurance policy to the plaintiffs. The plaintiffs then brought suit against Scottsdale allegedly for both breach of contract and bad faith. Scottsdale defended the claim on a number of grounds including that the assignment was defective and that there were no covered damages delineated in the Order granting judgment in favor of the plaintiffs. The Federal District Court agreed finding that the entirety of the plaintiffs’ claim constituted complaints for faulty workmanship only and that there were no damages awarded for property damage which resulted from the original defective construction. Therefore, there was no covered claim under the insurance policy and, because there was no coverage, the Court found that Scottsdale had not acted in bad faith in refusing to defend its insured. Bellino v. Scottsdale Insurance Company
- J.R. Murphy successfully argued an insurance coverage case involving construction defect before the Fourth Circuit Court of Appeals. Harleysville Mutual Insurance Co. v. Mungo Homes, Inc., Docket No. 04-1945 (per curium) (unpublished) arose the case as a class action lawsuit in the Summit subdivision in Columbia, South Carolina, which was built on the former Pontiac Precision Bombing Range. The claimants alleged economic loss and the loss of use of their property as a result of the failure to disclose the presence of ordnance and the failure to conduct an appropriate geological survey. After summary judgment was awarded to Harleysville by the trial court, the insured appealed. The case was consolidated with two other identical declaratory actions pending before the same federal judge. The Fourth Circuit Court of Appeals affirmed on the basis of the implied property exclusion which does not provide coverage for property that is not physically injured. Harleysville was the only insurer to raise the exclusion in its summary judgment motion or on appeal.
- J.R. Murphy received summary judgment in an underinsured rejection case in which the claimant argued that the failure of the insured to physically place an “X” beside the rejection choice made the otherwise valid offer ineffective. Betty Lynn Bradburn vs. Reliant Insurance Company 04-CP-44-259 (Hon. John C. Hayes, III presiding). J.R. is hoping to have the same success on the identical issue pending before the Supreme Court on a certified question in Floyd vs. Nationwide Insurance Company 2004-CP-23-2180.
- J.R. Murphy received summary judgment on an underinsured stacking case on the issue of whether the insured vehicle was “involved” in the accident in order to satisfy the requirements of South Carolina Code §38-77-160. The case involved a motorist who was involved in an initial accident, moved his vehicle out of the roadway and was standing beside the vehicle when another motorist swerved off the roadway and struck him. His vehicle was not struck or damaged by this “second” accident. The trial court granted summary judgment on the issue of stacking pursuant to the holding of Merck vs. Nationwide Mutual Insurance Company, 318 S.C. 22, 455 S.E.2d 697. The case is George Land vs. Nationwide 2004-CP-44-260 (Hon. John C. Hayes, III presiding).
- J.R. Murphy successfully argued two permissive use cases and obtained Summary Judgment in favor of the client/insurer, Ricky N. Brown vs. Nationwide Mutual Insurance Company 03-CP-40-4292 and Progressive v. Brown, Jonathan and James Brown 2004-CP-23-3520.