Guide for Causes of Action for Bad Faith Claims

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Last Updated
July 20, 2021

Bad Faith Claim by Statute

Oregon does not have statutory grounds for bad faith.

Bad Faith Claim by Common Law

The insured’s contractual rights in an action on an insurance policy, including the right to expect the insurer to exercise good faith in settling claims, are assignable. If the insurer fails to reasonably settle within the policy limits, the insured may assign its rights against the insurer to the insured’s judgment creditor. Groce v. Fidelity Gen. Ins. Co., 252 Ore. 296, 302-03, 448 P.2d 554 (1968). See also, Brownstone Homes Condo. Ass'n v. Brownstone Forest Heights, Ltd. Liab. Co., 358 Or. 223, 363 P.3d 467 (2015) For purposes of a bad faith litigation by an assignee of the insured, the assignee stands in the shoes of the insured. Supra, see Goddard v. Farmers Ins. Co., 202 Or. App. 79, 105, 120 P.3d 1260 (2005).

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Chartwell Law represents the interests of insurers and employers, as such, we continue to continue to monitor the legal landscape. If you have any questions about issues associated with right of action for bad faith claims, our attorneys are available to help. Please contact your Chartwell Law attorney.