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Bad Faith Blog

We cover current issues, highlights and best practices exclusively on claims of bad faith and extra contractual damages.

Bad Faith Blog
July 8, 2020

Indiana Court of Appeals Finds Legal Malpractice Claims are Not Assignable and Voluntarily Providing a Defense Does Not Create a Duty When No Duty to Defend Existed

The Court of Appeals of Indiana held legal malpractice claims are not assignable and affirmed dismissal of a claim against an insurer for vicarious liability for the alleged negligence of retained defense counsel. The Court additionally held when an insurer does not owe a duty to defend or indemnify, it cannot be held liable for a breach of the duty to defend if it voluntarily and gratuitously provided a defense anyway. 

Bad Faith Blog
February 25, 2020

No Release?  No Problem!  Montana Supreme Court holds settling for policy limits without obtaining a release did not breach a duty to the insured

In High Country Paving Inc. v. United Fire and Casualty Co., after a trucking accident, Plaintiff’s counsel submitted a demand on the carrier for policy limits without releasing the insured.  The insurance carrier agreed to the settlement, and offered to continue to pay defense costs after settling for policy limits.

Bad Faith Blog
February 27, 2019

Florida Supreme Court Holds Insurance Carrier Liable for Bad Faith and Excess Judgment Claims Handling Conduct Occurring After Policy Limits were Tendered

The Florida Supreme Court, in reversing an appellate court and disagreeing with federal precedent, held that a carrier could be liable for an excess judgment against the insured due to its bad faith conduct in handling a claim after it offered to tender its policy limits.

Bad Faith Blog
July 3, 2018

Insured’s Bankruptcy Does Not Shield Insurer From Bad Faith Claim In Excess Of Limits Under Georgia Law

Summary: The Court of Appeals of Georgia, relying on Georgia state law and federal bankruptcy statutes, held that the bad faith claim, and the potential for a verdict in excess of policy limits, survived an insured’s bankruptcy. Flanders, et al. v. Jackson. In the underlying tort case, the plaintiff’s 16-year-old son was a passenger in the insured’s vehicle when the insured lost control while traveling at excessive speed, careening off the road, flipping, and ejecting the 16-year-old from the backseat, causing his death.