Reinsurance Litigants May Need to Avoid Putting Their Faith in the Tort of Bad Faith

June 7, 2021
Justin K. Fortescue & Andrew L. Blacker - White and Williams LLP

In a recent Alabama federal court decision, aptly captioned Alabama Municipal Insurance Corporation v. Munich Reinsurance American, Inc.,[1] the plaintiff reinsured brought three counts of bad faith against the defendant reinsurer for failing to pay several claims totaling $1.9 million. The court granted the reinsurer’s motion to dismiss the bad faith counts concluding that Alabama does not recognize the tort of bad faith in the reinsurance context.

Reprinted courtesy of Justin K. Fortescue, White and Williams LLP and Andrew L. Blacker, White and Williams LLP

Mr. Fortescue may be contacted at fortescuej@whiteandwilliams.com
Mr. Blacker may be contacted at blackera@whiteandwilliams.com



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