Two-year Statute of Limitations Applies to Bad Faith Claims
Ash v Continental Ins. Co. (Pa. Oct. 11, 2007)
In an action for bad faith following denial of a first-party property claim for damages caused by fire, Pennsylvania Supreme Court held that claim was barred by two-year statute of limitations applied to tort actions. Court rejected argument that six-year limitations period applicable to breach of contract and other claims should apply, concluding that the duty imposed under Pennsylvania’s bad faith insurance statute (42 Pa.C.S. § 8371) derives primarily from the law of torts.
