Lawsuit continued:
Next, IDCC points out that pursuant to the agreement, Federal has demanded $27 mil as PARTIAL reimbursement for litigation expenses. IDCC denied this obligation as the agreement is unenforceable for "lack of consideration"
Declaratory relief. Paragraphs 46 - 58. IDCC seeks the court to declare the Reimbursement Agreement void and unenforceable.
AT THIS POINT, the lawsuit shifts gears and in paragraphs 59 -66 we allege that this refusal to pay our defenses was a breach of contract and that we should get our $157,000 payment to Federal refunded and we ask for damages for this breach.
BAD FAITH. Beginning in paragraph 67 through end, IDCC lays out its bad faith claims against Federal pursuant to Pennsylvania Civil Statutes. We allege that their bad faith entitles us to compensation, attorneys fees, costs and punitive damages.
MY COMMENT: Prior to all the tort reform legislation by the compasionate conservatives, BAD FAITH and BREACH OF GOOD FAITH AND FAIR DEALING TO YOUR INSURED'S were big verdict cases. I do not know how watered down the Pa. version of BAD FAITH is. In Tx. its not worth much since our recent tort reform constitutional amendments.
JMHO
Greg
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