Birth Center v. St. Paul Companies, Inc.

I must respectfully dissent on the grounds that a claim for bad faith refusal to settle sounds in tort, not in contract. Therefore, the only viable action available to Appellee regarding Appellants’ bad faith refusal to settle is an action in tort. The remedies available to Appellee consist of the recovery of: (1) the excess verdict pursuant to common law, see Cowden v. Aetna Casualty and Surety Co., 389 Pa. 459, 134 A.2d 223 (1957); and (2) interest, punitive damages, court costs and attorney fees pursuant to the bad faith statute, see 42 Pa.C.S. § 8371. Since consequential damages are not…