The defendant insurer moved for summary judgment to dismiss the plaintiff's action, arguing it was brought outside the one-year limitation period set out in the Insurance Act and the standard automobile insurance policy.
The plaintiff argued the claim was not for breach of contract, but for breach of the insurer's independent duty of good faith, which is subject to the basic two-year limitation period.
The court dismissed the motion, finding that based on the pleadings, the bad faith claim is separate and distinct from a claim under the insurance contract, and therefore falls outside the one-year limitation period.
