Opinion ID: 3050845
Heading Depth: 2
Heading Rank: 1

Heading: Elements of Bad Faith and Negligence

Text: Arkansas recognizes a claim for bad faith when 'an insurance company affirmatively engages in dishonest, malicious, or oppressive conduct in order to avoid a just obligation to its insured.' Selmon v. Metro. Life Ins. Co., 277 S.W.3d 196, 201 (Ark. 2008) (quoting Columbia Nat'l Ins. Co. v. Freeman, 64 S.W.3d 720, 723 (Ark. 2002)). The standard for establishing a claim for bad faith is rigorous and difficult to satisfy. Unum Life Ins. Co. v. Edwards, 210 S.W.3d 84, 87 (Ark. 2005). As long as the insurer is acting in good faith, negligence or bad judgment alone are not enough to sustain a bad faith claim. Selmon, 277 S.W.3d at 201. Nor is mere denial of a claim; there must be affirmative misconduct. Id. Although an insurer's actions, or inaction as the case may be, may not amount to a claim for bad faith, those same actions or inactions may support a claim . . . in tort for defective performance (negligence). Reynolds v. Shelter Mut. Ins. Co., 852 S.W.2d 799, 802 (Ark. 1993). Negligence is defined as the failure to do something which a reasonably careful person would do, or the doing of something which a reasonably careful person would not do, under circumstances similar to those shown by the evidence. Scully v. Middleton, 751 S.W.2d 5, 5 (Ark. 1988). [B]efore a negligent act may be used as the basis to recover damages, there must be a showing that the negligent act proximately caused the damages sustained and that such damages were reasonably foreseeable. Id. at 6. An insurance company can act in good faith and still be negligent. Parker, 341 S.W.2d at 41. -10-