Retailer that self-insures not subject to bad faith claims for arguable errors in adjusting claim involving self-insurance.(Recent Court Decisions)

From: Journal of Risk and Insurance | Date: September 1, 2004| Author: Stempel, Jeffrey W. | Copyright information

Morrison v. Toys "R" Us, Inc., 441 Mass. 451,806 N.E. 2d 388 (Supreme Judicial Court of Massachusetts--April 15, 2004)

An important limitation on bad faith actions, particularly when sounding in tort rather than in contract, is that they generally only apply to insurers. An ordinary breach of contract obligation or duty by a party that is not a fiduciary or near-fiduciary duty generally does not support a bad faith claim. Under the law of most states, bad faith actions o...

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