Genwealth Holdings LLC v. State Farm Fire and Casualty Company

Opinion

IN THE UNITED STATES DISTRICT COURT EASTERN DISTRICT OF ARKANSAS CENTRAL DIVISION

GENWEALTH HOLDINGS, LLC PLAINTIFF

v. No. 4:23-cv-720-DPM

STATE FARM FIRE AND CASUALTY COMPANY DEFENDANT

ORDER Genwealth Holdings’s office in Bryant, Arkansas was closed for several months after frozen pipes burst and flooded the office. It made a claim on its businessowner’s policy with State Farm. Genwealth believes State Farm wasn’t honest during its handling of the claim. It says State Farm hired a third-party accountant to review the claim. The accountant initially determined that Genwealth lost no income when its office was closed, but then calculated the loss to be $7,284.50. Genwealth also says State Farm didn’t review the accountant’s rationale and didn’t respond to Genwealth’s requests to discuss its problems with the accountant. But not investigating a claim adequately isn’t the kind of dishonest, malicious, or oppressive conduct that equals bad faith under Arkansas law. Reynolds v. Shelter Mutual Insurance Co., 313 Ark. 145, 148, 852 S.W.2d 799, 801 (1993). And offers to compromise, even low-ball offers, likewise aren’t a sufficient showing of bad faith. Aetna Casualty and Surety Co. v. Broadway Arms Corp., 281 Ark. 128, 133, 664 S.W.2d 463, 465 (1984). Motion, Doc. 5, granted. Count II of the complaint (bad faith) is dismissed without prejudice; count I (breach of contract) goes forward. So Ordered.

D.P. Marshall Jr. United States District Judge 16 October 2023

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