How Do Moody Claims Work in Oregon?

In its landmark 2023 decision Moody v. Oregon Community Credit Union, the Oregon Supreme Court held that an insurance policyholder could sue their insurer for emotional distress for negligently handling a valid first-party claim. Although Moody involved a life insurance policy, the Supreme Court’s decision opened the door for juries to award emotional distress damages in other types of first-party bad faith claims cases. For example, a person injured in a car accident could potentially sue their insurance company for unreasonably processing a claim related to their injuries.

Federal Judge Dismisses Moody Lawsuit Over Uninsured Motorist Coverage Dispute

It is important to note, however, that Moody claims do not apply to every factual scenario in which an insured feels upset about their insurer’s processing or adjusting of their claim.  An insured must still show that the insurer was negligent and violated the duty owed to their insured.  There are currently multiple lawsuits working their way through the courts on this very topic.

As a result, the next several years could very well result in a series of Oregon Court of Appeals and Supreme Court cases that alter the landscape of first-party insurance claims in our state.  However, until those cases are decided, Moody remains a useful tool for lawyers to utilize to try and ensure that their client’s insurer is acting reasonably and fairly.  However, insurers will almost always act in their own best interest, and not in their insureds.  Which is why a Moody analysis may be required in any first-party insurance case.

Contact a Portland First Party Bad Faith Claims Lawyer Today

Proving an insurance company acted in bad faith is not a simple task. But if you are struggling with your own insurance company following a serious car accident, it is in your best interest to speak with a qualified Portland Moody claims lawyer to learn more about your legal options. Contact Rosenbaum Law Group, PC, today at 503-288-8000 to schedule a free consultation.

Source:

scholar.google.com/scholar_case?case=17734356239695772252