Opinion ID: 1316495
Heading Depth: 1
Heading Rank: 2

Heading: Statutory Bad Faith Claim Of Jordache Enterprises, Inc., Ralph Nakash And Avi Nakash

Text: The majority opinion erroneously remands the statutory bad faith claim of Jordache Enterprises, Inc., Ralph Nakash and Avi Nakash, ruling that the statutory bad faith claim is alive and justiciable because it is not a claim that rests on substantially prevailing on the underlying contract action. Had the majority carefully reviewed the specific provisions of West Virginia law upon which these plaintiffs rely in asserting their bad faith claim, I believe the majority would have affirmed summary judgment on that claim. According to the majority, Jordache Enterprises, Inc., Ralph Nakash and Avi Nakash claim that National committed bad faith pursuant to W.Va.Code §§ 33-11-4(9)(b), (c), (d), (e) and (f), which read: (b) Failing to acknowledge and act reasonably promptly upon communications with respect to claims arising under insurance policies; (c) Failing to adopt and implement reasonable standards for the prompt investigation of claims arising under insurance policies; (d) Refusing to pay claims without conducting a reasonable investigation based upon all available information; (e) Failing to affirm or deny coverage of claims within a reasonable time after proof of loss statements have been completed; (f) Not attempting in good faith to effectuate prompt, fair and equitable settlements of claims in which liability has become reasonably clear. A fair reading of (b), (c), (d) and (f) requires any reasonable person to conclude that coverage must exist for them to be viable. However, the majority opinion determined that coverage did not exist. Therefore, provisions (b), (c), (d) and (f) are not justiciable. Summary judgment was appropriate as to those provisions. As to provision (e), two types of claims exist: (1) failing to affirm coverage timely and (2) failing to deny coverage timely. Nothing in the majority opinion, nor the record, reveal a material issue of dispute as to whether National failed to deny coverage within a reasonable time. It is clear from the record and the majority opinion that Jordache Enterprises, Inc., Ralph Nakash and Avi Nakash were asserting that part of provision (e) which addresses failing to affirm coverage within a reasonable time. On this issue, the majority opinion concluded that coverage did not exist. Thus, summary judgment should have been affirmed.