Minnesota Supreme Court Finds That The “Proceeds Awarded” In A First-Party Claim For Benefits As Described By Minnesota’s Bad Faith Statute Are Unambiguously Capped By The Insurance Policy.
Wilbur v. State Farm Mutual Automobile Insurance Company Minnesota Supreme Court 4/5/2017 The Minnesota Supreme Court’s decision in Wilbur v. State Farm Mutual Automobile Insurance Company addressed a question of first impression regarding the imposition of damages against an insurance company for a bad faith denial of a first-party underinsured motorist (UIM) claim. Minnesota Statutes Section 604.18 authorizes an award of “taxable costs” against an insurer who has denied a claim for insurance benefits without a reasonable basis; those costs are calculated based upon the amount of the “proceeds awarded” to a claimant following successful claims for breach of contract … Read more