In a recent unpublished decision, the California Court of Appeals upheld a $3 million judgment against an auto liability insurer that rejected proposed language in a settlement agreement, notwithstanding the insurer’s policy limits offer. Barickman v. Mercury Opinion, 2016 WL …
When a Policy Limits Offer is Not Enough: A Cautionary Tale of a Failure to Settle Case Read more »
Virtually all property insurance policies contain an appraisal clause, which outlines the appraisal procedure in broad terms. Those broad terms sometimes do not provide much guidance about the process, or about the effect which an appraisal award may have. A …
Don’t Mess with the Texas Prompt Payment of Claims Act: One Court’s Appraisal Result Read more »
It is highly unusual to find an insurance bad faith case which stems from an insurance company’s subrogation recovery. On July 6th, Wisconsin’s highest court had such a case, reversing the appellate court and holding that Dairyland Insurance Company’s subrogation …
The Paslays sued State Farm for failing to pay a portion of the damage caused to their Pacific Palisades house by a heavy rainstorm and for forcing them to move back into the house while it was still under construction. …
Genuine Dispute Defeats Both Bad Faith and Elder Abuse Read more »
This month, the Eastern District of Pennsylvania issued an opinion that reminds insurance carriers and their counsel that it is often beneficial to remove certain cases to federal court. While federal court offers many advantages in insurance litigation, the recent …
The Advantages of Removal: Twombly and Iqbal Applied to Bad Faith Claims Read more »
In many states, an insurer not only has a duty to timely communicate with its insured and respond to demands for settlement by a claimant asserting a claim regarding the adjustment of a loss, that duty may also include the …
The Duty to Follow-up Part II: When The Underlying Litigation Changes Read more »
In many states, an insurer not only has a duty to timely communicate with its insured and respond to demands for settlement by a claimant asserting a claim regarding the adjustment of a loss, that duty may also include the …
The Duty to Follow-up: How A $25,000 Offer To Settle Turns Into A $7 Million Loss Read more »
Differences between federal court and state court procedure can be important for insurers that find themselves involved in “bad faith” litigation. If a lawsuit alleging extracontractual claims is filed in federal court, or if it is removable to the federal …
Carriers rely on application representations regarding the existence of potential claims. Sometimes, the carrier learns after the fact that an applicant may not have reported all known potential claims. What can/should the carrier do? A recent example is found in …
When is Rescission Based Upon Material Misrepresentations The Proper Course of Action? Read more »
In CE and CLE courses, we hear all the time that the most often cited reason for a grievance or complaint is lack of communication. This truism provides a useful rule of thumb to avoid bad faith claims. Remember, for …
Avoid Inconsistent Communications By “Revolving Door” Adjusters Read more »