Hartford Acc. and Indem. Co. v. Lin (97 F.4th 500) 7th Cir., April 1, 2024

Words & Phrases

Uninsured Motorist Coverage: Arbitration

Trial Judge

Matthew F. Kennelly

Appellate Judge

Pryor

Holding

Zhen Feng Lin incurred serious injuries in work-related car accident with tortfeasor. Lin settled with tortfeasor’s insurer for $100,000 policy limit and then sought underinsured (UIM) coverage under employer’s policy. Hartford filed instant declaratory action to determine limits of its liability under the UIM coverage. Policy had arbitration clause. Dist. Ct. did not err in finding that arbitration clause did not apply to Lin’s counterclaim for bad faith. Moreover, Dist. Ct. did not err in dismissing Lin’s counterclaims for breach of contract and bad-faith, where there was nothing in policy that required Hartford to settle UIM claim within set time frame and policy did not incorporate any state insurance statutes or regulations. Record showed that arbitration panel found that Lin had incurred $1,063,895 in damages arising out of accident, and Dist. Ct. did not err in reducing $1,000,000 UIM limit by worker’s compensation net benefits retained by Lin (after settling the worker compensation carrier’s lien) and by $100,000 settlement proceeds received from tortfeasor.

Fact Summary

• Section 155 bad faith delay
• Uninsured motorist coverage/setoffs

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