What is the procedural history of a bad faith claim?

The federal cases cited by appellants are also distinguishable. The procedural history of Aceves v. Allstate (1995) 68 F.3d 1160 is completely different from that of the instant case. Judgment was entered for the insurance company on a claim of bad faith following a court trial, and was upheld on appeal. The right to appeal had therefore been preserved.

In Lunsford v. American Guarantee & Liability Ins. Co. (1994) 18 F.3d 653, the trial court found the policy which promised to defend against malicious prosecution did not include a duty to defend against an abuse of process claim and granted summary judgment in favor of the insurer. Because it found no duty to defend, it also found in the insurer's favor on the claim for bad faith. This ruling was reversed on appeal and the insured asked that the case be remanded for trial on the bad faith cause of action. However, the appellate court, on its own initiative, decided the bad faith claim, holding that the insurer had acted reasonably in its construction of the policy and in its investigation. The appellate court in Filippo I took no such action. If it had, there would have been a right to appeal to the highest court.