Wolfe v. Allstate Property & Casualty Insurance
877 F. Supp. 2d 228
M.D. Penn.2012Background
- Zierle caused a March 2007 DUI accident injuring Wolfe; Allstate insured Zierle with a $50,000 per-person policy.
- Policy excludes punitive damages and gives Allstate control over defense and settlement decisions.
- Wolfe offered $25,000 to settle; Allstate rejected, offering $1,200 instead.
- Trial yielded $15,000 in compensatory and $50,000 in punitive damages against Zierle; Allstate indemnified the compensatory amount but not punitive damages.
- Zierle assigned Wolfe any rights related to Allstate's defense/indemnity failures; Wolfe filed a civil action asserting bad faith, UTPCPL, and breach of good faith.
- District Court denied Allstate’s Rule 12(b)(1) motion to dismiss Counts I and II, allowing those claims to proceed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Are Counts I and II assignable and subject to jurisdiction | Assignment of § 8371 and UTPCPL claims is valid under Pennsylvania law | Feingold decisions imply unassignability of unliquidated tort claims like § 8371 and UTPCPL | Yes; Counts I and II are assignable and jurisdiction is proper; motion to dismiss denied |
Key Cases Cited
- Brown v. Candelora, 708 A.2d 104 (Pa. Super. Ct. 1998) (insurable claims against insurer, including bad faith, are assignable)
- Haugh v. Allstate Ins. Co., 322 F.3d 227 (3d Cir. 2003) (assignability of § 8371 claims and related punitive damages findings)
- Mortensen v. First Fed. Sav. & Loan Ass’n, 549 F.2d 884 (3d Cir. 1977) (distinguishes facial vs. factual attacks on jurisdiction)
- Carpet Group Int’l v. Oriental Rug Importers Ass’n, 227 F.3d 62 (3d Cir. 2000) (court may weigh evidence in jurisdictional challenges when attacked factually)