Liberty Mutual Insurance v. Paper Manufacturing Co.

MEMORANDUM AND ORDER

DITTER, District Judge.

Before me is plaintiffs’ motion to dismiss count 5 of defendant’s counterclaim pursuant to Fed.R.Civ.P. 12(b)(6). In count 5, Paper Manufacturing Co. asserts that Liberty Mutual Insurance Co., Liberty Mutual Fire Insurance Co., and Liberty Insurance Co., (collectively “Liberty”), engaged in bad faith conduct towards it. Paper contends that as a result it is entitled to punitive damages, costs, and attorney’s fees under 42 Pa.C.S.A. § 8371 (Purdon Supp.1990), a recently enacted statute which became effective July 1, 1990. Liberty argues that section…