PRESSLEY v. USAA
2:25-cv-01937
| E.D. Pa. | Jun 30, 2025Background
- Plaintiffs Ronald and Lorestine Pressley filed suit against USAA General Indemnity Company, alleging a failure to pay underinsured motorist (UIM) benefits owed under their automobile insurance policy.
- Mr. Pressley was injured in a car accident on December 22, 2023, and received the maximum payout from the tortfeasor's insurer ($15,000), after which Plaintiffs sought additional coverage through their own UIM policy with USAA GIC.
- Plaintiffs allege significant injuries and losses, including over $500,000 in medical expenses and a loss of consortium claim.
- Plaintiffs filed a four-count Complaint, alleging breach of contract, bad faith under 42 Pa. C.S. § 8371, additional breach of contract tied to UIM coverage, and unjust enrichment.
- The court considered USAA GIC’s partial motion to dismiss, after the parties had already stipulated to dismiss the unjust enrichment claim and a claim for punitive damages.
- The decision reviewed whether the breach of contract (Count I) and bad faith (Count II) claims could proceed alongside Plaintiffs’ claim for breach of UIM policy (Count III).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held | |
|---|---|---|---|---|
| Breach of contract as standalone claim | USAA failed to pay UIM benefit, breaching policy | Separate action for breach of good faith and fair dealing is proper | Separate claim is duplicative, subsumed by UIM breach claim | Dismissed with prejudice (subsumed by Count III) |
| Sufficient pleading of bad faith | Claim of delay, inadequate investigation, and unfair evaluation shows bad faith | Plaintiffs allege only short delay and conclusory allegations | Insufficient facts; short delay does not constitute bad faith | Dismissed without prejudice |
Key Cases Cited
- Ashcroft v. Iqbal, 556 U.S. 662 (2009) (pleading standards for Rule 12(b)(6) motions)
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (2007) (plausibility requirement for claims)
- Burton v. Teleflex Inc., 707 F.3d 417 (3d Cir. 2013) (good faith and fair dealing claim is subsumed by breach of contract in Pennsylvania)
- Landan v. Wal-Mart Real Est. Bus. Tr., 775 F. App’x 39 (3d Cir. 2019) (no independent cause of action for breach of good faith and fair dealing under Pennsylvania law)
- Smith v. State Farm Mut. Auto. Ins. Co., 506 F. App’x 133 (3d Cir. 2012) (delay alone does not amount to bad faith under Pennsylvania law)