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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
May 26, 2020

Washington Supreme Court Holds Insurer that Breached its Duty to Defend in Bad Faith is Estopped from Denying Coverage Absent an Applicable Affirmative Defense

The insureds sued their title insurer alleging breach of the duty to defend after Indian tribes asserted their treaty right to harvest shellfish from insureds' tidelands. The Washington Supreme Court held an insurer’s breach of its duty to defend was in bad faith because the insurer’s arguable interpretation of Washington law was not consistent with the insurer’s obligation to provide its insured with the benefit of any doubt regarding a duty to defend.