Homer Matthew Smith and Deborah Smith v. Allstate Insurance Company

I agree with the majority that the district court did not abuse its discretion in deciding to bifurcate the breach of contract and bad faith claims and in staying discovery on the bad faith claim pending disposition of the contract claim. However, I respectfully dissent from the majority’s opinion affirming the district court’s deter*408mination that the provisions in the insurance policies which required suit to be brought within one year after the loss were valid under Kentucky law and barred Plaintiffs’ breach of contract claim.

Under Kentucky law, parties to an insurance contract may limit the…