March 18, 2019 The Court of Appeals of Washington determined that not giving weight to the opinions of the insureds doctors when they opposed the insurer's doctors was a decision made in bad faith. The case is Leahy v. State Farm Mut. Auto. Ins. Co., 3 Wash. App. 2d 613, 418 P.3d 175 (2018).

Shannon Leahy suffered some soft tissue injuries when her car was struck from behind. The other driver was at fault, but only had a $25,000 liability insurance limit that was split between 3 injured parties. Leahy only received $9,128.50 from the other drivers insurance. Leahy had insurance through State Farm with $25,000 in personal injury protection and $100,000 in UIM coverage. She received medical treatment for her injuries.

While seeking treatment for the soft tissue injuries, Leahy also sought UIM benefits for other injuries including treatment for dermatomyositis (DM) which she had been diagnosed with after the accident. She alleged that the accident caused or triggered the DM. State Farm told Leahy that it would likely seek a second opinion to determine whether the DM was caused by the accident. A rheumatologist that represented Leahy concluded that her DM was caused by the accident, and reported that information to State Farm. State Farm selected a rheumatologist to review Leahy's doctor's report in order to determine whether or not the DM was caused by the accident. The State Farm rheumatologist concluded that it was probable that Leahy's DM was not caused by the accident, and there was no causal relationship between car accident trauma and a DM flair. State Farm made an offer of $11,000, and a waiver of its subrogation rights based on its determination that Leahy's soft tissue injuries were the only injuries caused by the accident. Leahy rejected the offer and sued State Farm for the policy limits. The jury found in favor of Leahy and State Farm paid the policy limits. Leahy amended her complaint to add claims for bad faith, violation of the Consumer Protection Act, and a violation of the Insurance Fair Conduct Act. The court granted summary judgment in favor of State Farm and Leahy appealed.