Roberts v. Kentucky National Insurance Company, et al. Plaintiffs brought suit against their insurer for alleged breach of duties under a homeowners policy of insurance following a burst pipe and ensuing water damage to their home. The Complaint included claims of breach of contract and insurance fraud; sought punitive damages, treble damages, and attorney fees; and asked the Court to appoint an umpire to conclude the policy’s appraisal procedures. Elizabeth filed a motion to dismiss for failure to state a claim, as the Complaint did not aver that the Plaintiffs had completed the appraisal process, a prerequisite to filing suit against the insurer; the insurance fraud statutes do not apply to representations made by or on behalf of an insurer; and the only damages available for an insurer’s bad faith failure to pay an insurance claim are limited to those found in T.C.A. § 56-8-113 and T.C.A. § 56-7-105(a). The Court agreed, and the suit was dismissed.
A mental health patient had a sexual relationship with her therapist and subsequently filed suit against her therapist and his employer. In a separate action, Richardson Law Group secured a declaratory judgment that the employer’s insurance policy did not extend coverage to the therapist’s sexual relationships with his clients. The U.S. Court of Appeals for the Sixth Circuit affirmed that there was no coverage for thetherapist’s acts. Scottsdale Ins. Co. v. Flowers, 513 F.3d 546 (6th Cir. Ky. 2008).