STATE OF OKLAHOMA

1st Session of the 54th Legislature (2013)

HOUSE BILL 1539	By:	Quinn

AS INTRODUCED

An Act relating to civil procedure; requiring court in actions against an insurer to rule on the breach of contract claim before considering other claims; prohibiting certain discovery prior to ruling on breach of contract claim; providing for immediate appeal of district court ruling on breach of contract claim; requiring dismissal with prejudice of certain claims if breach of contract claim fails; providing for codification; and providing an effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 840 of Title 12, unless there is created a duplication in numbering, reads as follows:
A.  If a civil action, filed against an insurer, includes a claim of bad faith, breach of the covenant of good faith and fair dealing, or other extra-contractual claim, the court shall first determine if the insurer breached the insurance contract before considering the claim of bad faith, breach of the covenant of good faith and fair dealing, or other extra-contractual claim.
B.  No discovery related to a claim of bad faith, breach of the covenant of good faith and fair dealing, or other extra-contractual claim shall be permitted by the court until a judgment against the insurer that it breached the insurance contract becomes final.
C.  The district court’s judgment regarding a breach of contract shall be immediately subject to appeal, notwithstanding the fact that issues relating to the claim of bad faith, breach of the covenant of good faith and fair dealing, or other extra-contractual claim remain unresolved.
D.  If, after the appeals process has been exhausted, the court rules the insurer did not breach its contractual obligations, the court shall dismiss with prejudice any claim of bad faith, breach of the covenant of good faith and fair dealing, or other extra-contractual claim.
SECTION 2.  This act shall become effective November 1, 2013.

54-1-6167	EK	01/16/13