context: In Pennsylvania, a duty of good faith and fair dealing is implicit in an insurance contract. As such, under Pennsylvania law, a plaintiff may bring a cause of action for breach of the contractual duty of good faith and fair dealing in the insurance context, permitting an insured to recover compensatory damages for an insurer's failure to act in good faith.
citation_a.signal: no signal
citation_a.identifier: 223 A.2d 8, 11
citation_a.parenthetical: holding that a common law breach of contract action will lie for the insurer's failure to comply with its obligation to act in good faith and with due care in representing the interests of the insured in its failure to settle with a third party
citation_a.sentence: Benevento v. Life USA Hold ing, Inc., 61 F.Supp.2d 407, 425 (E.D.Pa. 1999) (citations omitted); Gray v. Nationwide Mut. Ins. Co., 422 Pa. 500, 223 A.2d 8, 11 (Pa.1966) (holding that a common law breach of contract action will lie for the insurer’s failure to comply with its obligation to act in good faith and with due care in representing the interests of the insured in its failure to settle with a third party); Johnson v. Beane, 541 Pa. 449, 664 A.2d 96, 101 (Cappy, J. concurring) (citing Cowden v. Aetna Casualty and Surety Company, 389 Pa. 459, 134 A.2d 223 (1957)); see also Birth Center v. St. Paul Cos., 567 Pa. 386, 787 A.2d 376, 385-86 (Pa.2001) (holding that, in the context a third party case in which the insurer refused to settle a claim on behalf of the insured, “nothing in D Ambrosio bars a party bringing a bad faith action sounding in contract from recovering damages that are otherwise available to parties in contract actions ....”)
citation_b.signal: see also
citation_b.identifier: 787 A.2d 376, 385-86
citation_b.parenthetical: holding that, in the context a third party case in which the insurer refused to settle a claim on behalf of the insured, "nothing in D Ambrosio bars a party bringing a bad faith action sounding in contract from recovering damages that are otherwise available to parties in contract actions ...."
citation_b.sentence: Benevento v. Life USA Hold ing, Inc., 61 F.Supp.2d 407, 425 (E.D.Pa. 1999) (citations omitted); Gray v. Nationwide Mut. Ins. Co., 422 Pa. 500, 223 A.2d 8, 11 (Pa.1966) (holding that a common law breach of contract action will lie for the insurer’s failure to comply with its obligation to act in good faith and with due care in representing the interests of the insured in its failure to settle with a third party); Johnson v. Beane, 541 Pa. 449, 664 A.2d 96, 101 (Cappy, J. concurring) (citing Cowden v. Aetna Casualty and Surety Company, 389 Pa. 459, 134 A.2d 223 (1957)); see also Birth Center v. St. Paul Cos., 567 Pa. 386, 787 A.2d 376, 385-86 (Pa.2001) (holding that, in the context a third party case in which the insurer refused to settle a claim on behalf of the insured, “nothing in D Ambrosio bars a party bringing a bad faith action sounding in contract from recovering damages that are otherwise available to parties in contract actions ....”)