Opinion ID: 2276887
Heading Depth: 1
Heading Rank: 6

Heading: finding of bad faith

Text: [¶ 35] The court found that the insurers acted in bad faith thereby breaching the implied covenant of good faith and fair dealing. Specifically, the court found that Henderson, who was acting as the agent of the insurers in adjusting the loss, adjusted the loss with the goal of coming within the lower policy limits and that his adjustment was grossly substandard and not conducted in a fair and good faith manner. This factual finding is supported by the record. [¶ 36] In addition, the court found bad faith because of the failure of the insurers to pay the appraisal award. See 24-A M.R.S.A. §§ 2436(1) (requiring insurer to pay undisputed fire loss claims or dispute claim in writing within sixty days) and 3002 (requiring that contracts provide that payment is due within sixty days of appraisal award). The court, relying on sections 2436 and 24-A M.R.S.A. § 2436-A (1990), repealed and replaced by P.L.1997, ch. 621, § 1, ordered the insurers to pay County Forest's attorney fees because of their failure to pay the appraisal award when due. It is not disputed that the insurers neither paid the appraisal award nor did they dispute the appraisal award within sixty days of its issuance. [4] The court did not err in its finding that the insurers acted in bad faith.