McElhiney v. Allstate Insurance

MEMORANDUM

BARTLE, District Judge.

This is an action arising out of a homeowners insurance • policy issued by the defendant, Allstate Insurance Company (“Allstate”), to plaintiffs John and Denise McElhiney. Count I of the complaint asserts that Allstate has breached the insurance contract by refusing to pay for a covered property loss. Count II avers that defendant has acted in bad faith, in violation of 42 Pa.Cons.Stat.Ann. § 8371, by denying coverage and by failing to conduct a reasonable investigation to determine whether plaintiffs’ claim was covered. Before the court is Allstate’s motion…