Bad Faith Suit Requires Specificity About What Was Unfair
Pro Se Plaintiff Needed a Lawyer
Post number 5292
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In Sean Shurelds v. SAFECO Insurance Company of America, a/k/a Liberty Mutual, Civil Action No. 25-cv-1550, United States District Court, E.D. Pennsylvania (February 11, 2026) Plaintiff Sean Shurelds, acting pro se, filed suit against Safeco Insurance Company of America alleging bad faith insurance practices, fraudulent misrepresentation, and negligence with the USDC giving him several attempts to sufficiently allege facts to state a cause against SAFECO.
Shurelds had purchased a landlord protection policy for his Philadelphia property, which was in effect from November 28, 2023, to November 28, 2024. After his tenant abandoned the property and unauthorized occupants caused extensive damage, Shurelds submitted five insurance claims to Safeco. Safeco denied all of these claims, citing the damage as normal wear and tear. One claim was referred to law enforcement for alleged insurance fraud.
Law
The legal dispute centers on claims of statutory bad faith insurance practices under Pennsylvania law. Shurelds’ original complaint included additional claims for fraudulent misrepresentation and negligence, which were dismissed with prejudice by the court.
The case proceeded with only the statutory bad faith claim, and later Shurelds sought to add claims for emotional distress and slander; only these two were permitted to proceed. Ultimately, Shurelds filed a Second Amended Complaint asserting eight claims, but none for emotional distress or slander.
Discussion
Safeco moved to dismiss all claims in the Second Amended Complaint. The court reviewed the factual history, including the timeline of Shurelds’ insurance claims and Safeco’s responses. The court noted that Safeco’s denial of the claims was based on its assessment that the property damage resulted from normal wear and tear, not covered losses. The referral of one claim to a detective for suspected insurance fraud further complicated the dispute.
Analysis
The court found that Shurelds failed to state viable claims beyond statutory bad faith, and even that claim was insufficiently supported by facts.
To survive a motion to dismiss, a complaint must include sufficient factual matter, taken as true, to show that the claim is facially plausible. A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.
Under Pennsylvania law, a party may recover certain damages if an insurer acted in bad faith. To establish a bad faith insurance claim under section 8371, a plaintiff must establish by clear and convincing evidence, (1) the insurer did not have a reasonable basis for denying benefits under the policy, and (2) that the insurer knew or recklessly disregarded its lack of a reasonable basis in denying the claim.
A plaintiff cannot merely say that an insurer acted unfairly but instead must describe with specificity what was unfair.
The Court gave Shurelds multiple opportunities to amend his complaint. Despite these opportunities, he has not raised anything suggesting a cognizable claim. Accordingly, the Court found that allowing any additional amendments is futile.
The court granted Safeco’s motion to dismiss in its entirety, dismissing the Second Amended Complaint with prejudice.
The decision underscores the importance of providing specific factual allegations and legal grounds when asserting insurance bad faith and related claims in federal court.
ZALMA OPINION
It has become axiomatic that a person not a lawyer who represents himself in litigation has a fool for a client. In this case, the USDC, trying to help the Plaintiff, gave him several attempts to amend the complaint to allege with sufficient specificity a viable bad faith claim. He failed and with patience of the USDC was exhausted and the case dismissed.
(c) 2026 Barry Zalma & ClaimSchool, Inc.
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Post number 5291
See the video at and at and at https://www.zalma.com/blog plus more than 5250 posts.
The Work of a Court Appointed Receiver is Constitutionally Protected
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Facts
In September 2021, the State of California filed felony charges against Simon Semaan, alleging violations of Insurance Code section 11760(a) for making...
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Post number 5291
See the video at and at and at https://www.zalma.com/blog plus more than 5250 posts.
The Work of a Court Appointed Receiver is Constitutionally Protected
In Simon Semaan et al. v. Robert P. Mosier et al., G064385, California Court of Appeals, Fourth District, Third Division (February 6, 2026) the Court of Appeals applied the California anti-SLAPP statute which protects defendants from meritless lawsuits arising from constitutionally protected activities, including those performed in official capacities. The court also considered the doctrine of quasi-judicial immunity, which shields court-appointed receivers from liability for discretionary acts performed within their official duties.
Facts
In September 2021, the State of California filed felony charges against Simon Semaan, alleging violations of Insurance Code section 11760(a) for making...
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Facts
Deerpass Trucking, an interstate motor carrier, leased the tractor from Deerpass Farms Services, LLC, and hauled cargo for Conserv FS, Inc. under a trailer interchange agreement. The tractor was insured by Great West Casualty Company with a $1 million policy limit, while the trailer was insured by Nationwide Agribusiness Insurance Company with a $2 million ...
Passover for Americans
Posted on February 19, 2026 by Barry Zalma
“The Passover Seder For Americans”
For more than 3,000 years Jewish fathers have told the story of the Exodus of the enslaved Jews from Egypt. Telling the story has been required of all Jewish fathers. Americans, who have lived in North America for more than 300 years have become Americans and many have lost the ability to read, write and understand the Hebrew language in which the story of Passover was first told in the Torah. Passover is one of the many holidays Jewish People celebrate to help them remember the importance of G_d in their lives. We see the animals, the oceans, the rivers, the mountains, the rain, sun, the planets, the stars, and the people and wonder how did all these wonderful things come into being. Jews believe the force we call G_d created the entire universe and everything in it. Jews feel G_d is all seeing and knowing and although we can’t see Him, He is everywhere and in everyone.We understand...
Passover for Americans
Posted on February 19, 2026 by Barry Zalma
Read the full article at https://www.linkedin.com/pulse/passover-americans-barry-zalma-esq-cfe-5vgkc.
“The Passover Seder For Americans”
For more than 3,000 years Jewish fathers have told the story of the Exodus of the enslaved Jews from Egypt. Telling the story has been required of all Jewish fathers. Americans, who have lived in North America for more than 300 years have become Americans and many have lostthe ability to read, write and understand the Hebrew language in which the story of Passover was first told in the Torah.
Passover is one of the many holidays Jewish People celebrate to help them remember the importance of G_d in their lives. We see the animals, the oceans, the rivers, the mountains, the rain, sun, the planets, the stars, and the people and ...
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Post number 5275
Posted on January 30, 2026 by Barry Zalma
See the video at and at
When Experts for Both Sides Agree That Two Causes Concur to Cause a Wall to Collapse Exclusion Applies
In Lido Hospitality, Inc. v. AIX Specialty Insurance Company, No. 1-24-1465, 2026 IL App (1st) 241465-U, Court of Appeals of Illinois (January 27, 2026) resolved the effect of an anti-concurrent cause exclusion to a loss with more than one cause.
Facts and Background
Lido Hospitality, Inc. operates the Lido Motel in Franklin Park, Illinois. In November 2020, a windstorm caused one of the motel’s brick veneer walls to collapse. At the time, Lido was insured under a policy issued by AIX Specialty Insurance Company which provided coverage for windstorm damage. However, the policy contained an exclusion for any loss or damage directly or indirectly resulting from ...
