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February 4, 2016
Court Refuses to Adopt Minority View in Common Law and Statutory Bad Faith Claims

Halloran & Sage prevailed on a Motion to Strike three extra-contractual counts brought against State Farm in an uninsured/underinsured motorist case. After having previously had their solitary extra-contractual claim stricken by the court, the plaintiffs replied, this time alleging, in three counts, breach of the covenant of good faith and faith dealing, violations of the Connecticut Unfair Insurance Practices Act (“CUIPA”) and violations of the Connecticut Unfair Trade Practices Act (“CUTPA”) based upon violations of CUIPA. State Farm moved to strike each count on the grounds that they were insufficiently pled. Namely, with respect to the claim for breach of the covenant of good faith and fair dealing, State Farm argued that the plaintiffs’ allegations of unreasonable delay and unreasonable investigation in response to their claim do not amount to bad faith. Concerning the CUIPA count, State Farm argued that there is no private right of action under CUIPA. Lastly, regarding the CUTPA/CUIPA count State Farm asserted that the plaintiffs did not allege facts demonstrating a “general business practice” and that a conclusory allegation that the insurer handled other claims in a similar manner with such frequency as to constitute a general business practice was legally insufficient to support a CUTPA/CUIPA claim. The plaintiffs, in their objection, sought to have the court adopt the reasoning of a superior court case which denied an insurer’s motion to strike on the exact same counts with very similar allegations. In oral argument, H & S asserted that the case the plaintiffs’ relied upon represented the minority view in Connecticut and that, instead, the Court should adopt the better reasoned, and more persuasive cases relied upon by State Farm. In a well-reasoned decision, the court (Sferazza, J.) agreed with State Farm’s position and ordered the three extra-contractual counts against State Farm stricken.