On March 13, 2013, the Oregon legislature introduced Senate Bill 814 to create sweeping reforms on environmental claims handling regulations and available remedies for insureds facing liability for cleanup of contaminated property located in the state. The proposed legislation would …

Senate Bill 814 Proposes Sweeping and Retroactive Changes to Environmental Claims Handling in Oregon Read more »

On April 15, 2013, a New York trial court granted the insured’s request for the production of certain claims file material and previously sealed discovery in Estée Lauder Inc. v. OneBeacon Insurance Group LLC et al., index number 602379/2005, leaving …

Estée Lauder v. OneBeacon Insurance Group – Expanding the Scope of Discovery in Bad Faith Cases Read more »

Last week, the Montana Supreme Court held that the insurer acted reasonably when it stopped payments based upon its reliance on a prior order from the Workers’ Compensation Court (“WCC”).  Steward v. Liberty Northwest Ins. Corp., 2013 WK 1739577, *7 …

Good Faith Denial of Benefits When Insurer Relies on Rulings of Workers’ Compensation Court Read more »

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 …

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

The United States District Court for the Western District of Texas in Austin recently held that an insurer’s timely payment of an appraisal award bars the insured’s extra-contractual tort claims. Michels v. Safeco Ins. Co. of Indiana, No. 1:12-cv-00511-SS (W.D. …

Prompt Payment of An Appraisal Award Bars Bad Faith Per Austin U.S. District Court, Although Some Acts By An Insurer May Leave The Door Open Per Galveston U.S. District Court Read more »

In Merrill v. State Farm Fire and Cas. Co., 2013 WL 588515 (W.D.Pa., Feb 13, 2013), the U.S. District Court for the Western District of Pennsylvania dismissed the insured’s common law bad faith claim because it was based solely on …

Bad Faith Claims Cannot Be Based Solely On Breach Of Contract And Must Allege More Than Conclusory Allegations Read more »