OREGON FEDERAL COURT FINDS NO BREACH OF DUTY OF GOOD FAITH DESPITE INSURER’S BREACH OF CONTRACT

Quarterly Newsletter Spring 2018

In a recent decision, an Oregon Court rejected an insurer’s position that the terms “surface water” and “flood water” referred to natural water sources as well as man-made sources, thereby finding that the insurers breached the contract by denying coverage. However, the Court reinforced the general rule in Oregon that, despite being incorrect on coverage, the insurer could not be held liable for breach of its duty of fair dealing as a matter of law simply for incorrectly interpreting the scope of coverage afforded by its policy.

Please click here to read the full article.