Case Explained: BRISTOL SPRINGS CUSTOM HOMES, LLC v. ARGO GROUP US, INC.; COLONY INSURANCE CO

Court: United States Court of Appeals for the Fourth Circuit Filed: 2026-07-24 The Fourth Circuit affirmed the district court’s grant of summary judgment in favor of the insurance carrier and its claims administrator on the insured’s breach of contract, common law bad faith (*Hayseeds*), and statutory bad faith claims. The court applied de novo review to determine whether there were genuine disputes of material fact. Regarding the *Hayseeds* claim, the court held that the insured failed to establish the “necessity” of legal services required to recover damages, as it did not demonstrate that a settlement would not have occurred but for its attorney’s intervention. The court noted that the insured refused reasonable pre-trial mediation terms and, after filing for bankruptcy, failed to engage in settlement negotiations or respond to the insurer’s attempts to resolve the underlying claim. Regarding the statutory bad faith claims under the West Virginia Unfair Trade Practices Act, the court affirmed the district court’s conclusion that the relevant statutory subsections apply only to third-party claims and do not provide a cause of action for an insured against its own insurer. The practical consequence is that the judgment for the defendants stands, and the defendants’ cross-appeal seeking affirmation on alternative grounds was dismissed as unnecessary. Do It For The Case Law is a news reporting service. Nothing in this episode constitutes legal advice.