PA: Statutory Bad Faith Claim Is Assignable

Back in July, I posted about a case in front of the Pennsylvania Supreme Court over whether the statutory component of bad faith is assignable.  The issue, specifically, was whether the statutory bad faith remedies, sounding in tort, are, like the common law bad faith contract action, assignable.  On Monday, the court answered in the affirmative.  The court stated:

We recognize that the policy considerations (which are ably developed in the

arguments of the litigants and their amici) are mixed in character. On balance,

however, we find that consideration of the occasion and necessity for Section 8371, the

object to be attained, the previous legal landscape, as well as the consequences of our

interpretation, favor Wolfe’s position. Centrally, we simply do not believe the General

Assembly contemplated that the supplementation of the redress available for bad faith

on the part of insurance carriers in relation to their insureds would result either in a

curtailment of assignments of pre-existing causes of action in connection with

settlements or the splitting of actions. Certainly, if we are incorrect in our assessment in

this regard, the General Assembly may seek to implement curative measures pertaining

to future cases, subject to constitutional limitations.

Widener alumnus Scott Cooper co-authored an amicus brief, cited in the opinion, on behalf of the Pennsylvania Association for Justice.