Monthly Archives: September 2015

Texas Supreme Court Declines Opportunity to Review Appellate Decision Clarifying Insurer’s Settlement Obligations In Multi-Plaintiff/Multi-Insured Context

Last year in Patterson, et al. v. Home State County Mut. Ins. Co., 2014 Tex. App. LEXIS 4460, 2014 WL 1676931 (Tex.App., Apr. 24, 2014), the Texas First Court of Appeals (Houston) held that an insurer was not obligated to accept a settlement demand unless that offer encompassed all claimants and released all insureds from liability.  On September 11th, the state’s highest court surprised many by denying the policyholders’ Petition for Writ of Error, and it thereby left the appellate panel’s ruling in place. The Underlying Case Diane Patterson died in a trucking accident when a truck driven by Charles Hitchens (Driver) rear-ended her car while stopped.  Allegedly, Driver tested positive for cocaine metabolites.  Patterson’s family, including her estate, husband,

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Eleventh Circuit Finds No Bad Faith in Multiple-Claimant Claims-Handing Situation

In a new decision, Mesa v. Clarendon National Ins. Co., 2015 WL 5059496, 2015 U.S. App. LEXIS 15203 (11th Cir., Aug. 28, 2015), the Court of Appeals found that the insurer’s claims-handling of multiple claimants did not rise to the level of bad faith under Florida law.   The decision affirmed the district court’s ruling granting summary judgment in favor of the carrier, and it provides valuable lessons to insurers handling sometimes difficult multiple-claimant scenarios. Mesa was one of four parties injured in an April 3, 2006 automobile accident caused by Cesar A. Vega Zelaya.  The bodily injury liability limits under the policy were $10,000 per person and $20,000 per accident.  The carrier received notice of the accident on April 24th

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Avoiding Insurance Bad Faith
Cozen O’Connor represents insurance clients in jurisdictions throughout the U.S. against statutory and common law first- and third-party extracontractual claims for actual and consequential damages, penalties, punitive and exemplary damages, attorneys’ fees and costs, and coverage payments. Whether bad faith claims are addenda to a broader coverage matter or are central to the complaint, Cozen O’Connor attorneys know how to efficiently respond to extracontractual causes of action. More
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