.png)
The Maine Unfair Claims Practices Act provides that § 2164-D “may not be construed to create or imply a private cause of action for violation of this section. Claims for bad faith and in tort and contract are often available in first-party actions.[1]
A third-party tort claimant does not have the right to assert a bad faith claim against the tort feasor’s insurer.[2] The insurer’s duties extend only to its insured. A liability insurer may be liable to an insured for negligently failing to settle within policy limits.[3]Third parties are limited to breach of contract actions and may only sue for breach of contract if the contracting parties intended that the third party have an enforceable right.[4]
---
[1] Marquis v. Farm Family Mut. Ins. Co., 628 A.2d 644, 652 (Me. 1993).
[2] Linscott v. State Farm Mutual Auto. Ins. Co., 368 A.2d 1161 (Me. 1977).
[3] Wilson v. Aetna Cas. & Sur. Co., 76 A.2d 111 (Me. 1950).
[4] Fleet Bank of Maine v. Harriman, 721 A.2d 658, 600-61 (Me. 1998).
Chartwell Law represents the interests of insurers and employers, as such, we continue to continue to monitor the legal landscape. If you have any questions about issues associated with right of action for bad faith claims, our attorneys are available to help. Please contact your Chartwell Law attorney.
