Effort Fails To Import Tortious Bad Faith Into Maryland Through Conflict Of Laws Analysis

I thought Cecilia Schwaber Trust Two v. Hartford Accident and Indemnity was worth a mention.  The policyholder tried to get around Maryland law, which does not recognize insurer tortious bad faith, by looking to the law of Indiana and Pennsylvania, where some claims handling occurred.  The federal district court said that Maryland conflict of laws analysis is clear: when the policyholder is in Maryland, the contract was executed in Maryland and the loss occurred in Maryland, no precedent exists for importing the substantive law of another state based on the performance of some administrative acts relative to a claim in those states.  The cite is 2006 WL 1888691 (D. Md. June 26, 2006).  It’s hard to argue with the court on this one.

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