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Bifurcation of Bad-Faith Claims

By Jessica F. Pardi
June 01, 2016

Recently, federal courts across the country have ruled on insurers' motions to bifurcate bad-faith litigation; i.e., motions to separate and stay discovery and/or the trial of the bad-faith claims from the insured's claim for coverage. The most recent rulings in cases where insureds opposed bifurcation are mixed, but the majority appear to favor insureds and deny the carriers' motions to bifurcate. For examples of cases denying bifurcation motions, see Wagner v. Allstate Ins. Co., 2016 U.S. Dist. LEXIS 6364 (Jan. 19, 2016); Bitpay, Inc. v. Mass. Bay Ins. Co., ___ F.Supp. 3d ___, 2016 WL 1105263 (March 17, 2016); Brown v. Allstate Prop. & Cas. Ins. Co., 2015 WL 6739143 (M.D. Ala. Nov. 3, 2015). For examples of cases granting bifurcation motions, see Kermeen v. State Farm Ins. Co., 2015 WL 4727646 (D. Neb. Aug. 10, 2015); Holloway v. Ohio Sec. Ins. Co., 2015 WL 6870141 (W.D. Ky. Nov. 4, 2015).

Bifurcation

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