Rush to File a Bad Faith Suit Fails for Lack of Evidence

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An underinsured motorist claim was arbitrated only after the claimants first sued the insurer, 21st Century Indemnity Insurance Company (insurer) that was arbitrated in favor of the claimant with an award less than the demand. The claimant insisted on going forward with a bad faith suit only to lose at the trial court.

ZALMA OPINION

Greed by insureds and their lawyers are often the only reason to file a bad faith suit. In this case the Gavastos gave the insurer very little time to decide the claim, failed or refused to provide evidence to prove the amount of their loss, or even take the time and effort to testify at the trial. They tried to set up the insurer for a bad faith case, did the set up badly, and deserved to lose the bad faith case and then try to get the appellate court to cure the errors made by the Gavastos and their lawyer. A bad faith set up suit needs real evidence to succeed.