Bad Faith

The attorneys at Ferguson, Frost, Moore & Young have years of experience defending bad faith claims brought against insurers. Bad faith is defined in Alabama as the intentional refusal to pay a claim with knowledge that no lawful basis exists for the denial. Within this framework, however, the Alabama Supreme Court has created both “normal” and “abnormal” bad faith claims. A “normal” bad faith claim is due to be dismissed if the plaintiff cannot prove he or she is entitled to a directed verdict on the underlying breach of contract claim. In an “abnormal” bad faith claim, however, the directed verdict test is not the standard. This important distinction frequently governs whether the case will survive summary judgment. Please contact the lawyers in our bad faith litigation group for additional information.

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