Failure of Bad Faith Claim
In Backwater, Inc. v. Penn-American Insurance Co., 448 F.3d 962 (7th Cir. 05/24/2006) a bad faith claim failed when the insurer produced evidence of attempted insurance fraud. The case began in late December 2001 when “Finke’s,” a nightclub in Highland, Indiana, was vandalized. The damage was extensive, and the club’s owners, William and Ruth Finke (more precisely, their company, Backwater, Inc.), soon filed a claim with the property’s insurer, Penn-American Insurance Company.
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