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Insured Party Can Sue Insurance Company for Negligence

The Pennsylvania Supreme Court recently decided an interesting case involving an insured couple suing their insurance company over negligent handling of a claim under their homeowner's policy.  Typically, when a contract exists between two parties, one of the parties cannot sue the other party for negligently carrying out duties covered by the contract.  The theory is that the claim is one of breach of contract and not negligence (or tort). The Pennsylvania Supreme Court ruled, in Bruno v. Erie Insurance, however that one party to a contract will not be prevented from suing the other for negligence merely because a contract between the two parties existed.  

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