John Lynch obtained dismissal with prejudice of Section 155 statutory bad faith claims in insurance coverage dispute

Two entities associated with an athletic training company, as well as an athletic trainer, sought defense and indemnity from an insurance carrier as additional insureds on a policy of insurance issued to a school district. In response to the carrier's complaint for declaratory judgment, the entities filed a counterclaim seeking, in part, statutory penalties pursuant to Section 155. John and Drew argued that the Section 155 claims were deficient, as the defendants were unable to plead any facts to show that the carrier acted "vexatiously or unreasonably" in denying coverage. The court agreed and dismissed the Section 155 claims with prejudice.