• Rhode Island Supreme Court Changes the Rules for Bad Faith Litigation
  • April 20, 2006 | Author: Michael F. Aylward
  • Law Firm: Morrison Mahoney LLP - Boston Office
  • The Rhode Island Supreme Court has eased the burden that policyholders have historically faced in seeking to recover bad faith damages against insurers. While retaining the general rule that an insurer is insulated from bad faith liability if its coverage position was "fairly debatable," the Supreme Court has ruled in Skaling v. Aetna Insurance Company, No. 2000-325 (R.I. May 10, 2002) that the procedural hurdles for such claims should be lowered and, furthermore, that even a fairly debatable coverage position could result in bad faith liability if it resulted from an unfairly biased or inadequate claims investigation.