Superior Court: Bad Faith Claims are Subject to a 2-Year Statute of Limitations (11/5/04)

On November 3, 2004, the Pennsylvania Superior Court ruled in the case of Ash v. Continental Insurance Company, that any suit alleging bad faith against an insurance company must be filed within two years. This ruling follows a number of conflicting decisions handed down by Pennsylvania State and Federal Courts over the years. Some of those rulings held that the correct limitations period was 6 years, while others found that 2 years was the proper yardstick.

The Superior Court noted that the issue was "one of first impression in our state appellate courts". It found persuasive the decision of the trial court that bad faith claims are "a statutorily-created tort action subject to a two-year statute of limitations." With the new ruling, the issue may now be ripe for Supreme Court disposition.

If you have any questions about this ruling, contact James B. Burns, Esquire at 215-587-9400.