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No Bad Faith Recovery Unless Insured Demonstrates Acts Were A Producing Cause Of Damages

A jury found that Mid-Continent committed five separate violations of the Texas Insurance Code and awarded $2 million to the insured as compensation for the amount it paid to settle third-party claims.  The trial court, however, granted Mid-Continent’s motion for judgment to overturn the jury verdict.  Mid-Continent Cas. Co. v. Eland Energy, Inc., 795 F. Supp.2d 493 (N.D. Tex. 2011).  The insured appealed, and the United States Court of Appeals for the Fifth Circuit affirmed the award in favor of Mid-Continent.  Mid-Continent Cas. Co. v. Eland Energy, Inc., 2013 WL 656631 (5th Cir. Feb. 22, 2013). About The Author

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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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