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Kathy Carlsten and Clinton Magill Secure Complete Dismissal for Third-Party Claims Administrator and Majority Dismissal for Insurance Company

January 8, 2018

Kathy Carlsten and Clinton Magill obtained a complete dismissal for their third-party claims administrator client in Anderson County, South Carolina.  Additionally, they successfully dismissed four claims asserted against their insurance company client in the same case.  The plaintiff’s complaint alleged four claims against both clients for civil conspiracy, breach of covenant of good faith and fair dealing, unfair trade practices, and bad faith.  The plaintiff also brought an additional claim against the insurance company for fraud.  Kathy and Clinton filed a motion to dismiss the plaintiff’s complaint and argued their motion in the Anderson County Circuit Court.  At the hearing, Clinton argued that (1) the plaintiff’s civil conspiracy claim must be dismissed because the plaintiff had failed to plead both special damages and an overt act done pursuant to a common scheme; (2) the plaintiff’s breach of covenant of good faith and fair dealing claim was duplicative of its bad faith claim and was otherwise foreclosed by admissions contained within the complaint; and (3) the plaintiff’s unfair trade practices claim was barred because the Unfair Trade Practices Act did not apply to practices regulated under South Carolina’s Insurance Trade Practices Act.  The Circuit Court agreed on all grounds and dismissed these claims against both clients with prejudice.  Additionally, Clinton argued that the plaintiff’s bad faith action must fail as to the administrator because no bad faith claim can be brought against a third-party administrator in South Carolina.  The Circuit Court again agreed and granted their motion as to the remaining claim against the administrator, thereby dismissing it from the case with prejudice.  Finally, Clinton argued—and the Court agreed—that the plaintiff had failed to plead fraud with particularity and that the fraud claim against the insurance company must therefore be dismissed.  As a result of their motion, Kathy and Clinton secured a complete dismissal of their administrator client and a dismissal of four claims against their insurance company client, all of which was with prejudice

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For informational purposes only. Past success does not indicate the likelihood of success in future cases.