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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
December 29, 2014

Bad Faith and UIM Coverage

Here the issue was the conduct of the insurer under in handling a claim for underinsured motorist coverage. The injured insured had presented evidence of future wage loss of over $4,000,000.00, but liability coverage of only $3,000,000.00.

Bad Faith Blog
July 22, 2014

Summary Judgment Confusion

Summary: Progressive Casualty Insurance Company (“Progressive”) issued a Directors and Officers (D&O) Liability Policy to the National Bank of California (“Bank”) on October 30, 2010. The Declarations Page stated that the defense costs were included within the limit on liability. The policy further gave the insured a defense option, but the Bank did not choose the defense option for D&O Liability. The Bank presented six separate claims to Progressive to which Progressive asserted multiple affirmative defenses. The Bank and Progressive then filed multiple partial motions for summary judgments relating to key issues regarding the claims handling. Only two of those complex issues are addressed here.

Bad Faith Blog
January 8, 2014

Cumis Counsel’s Sanctionable Conduct Precluded Bad Faith Award/Supported Insurer’s Reimbursement Claim

Veterinarians sued insurers for an allegedly improper defense under a professional liability insurance policy. The insurers filed a counterclaim seeking reimbursement. After the matter was sent to arbitration, the arbitration award did not include a finding that the insured’s Cumis counsel charged fees which were “reasonable and necessary.” In view of the failure to find that the insurer had improperly withheld the full amount of the fees and the further finding that the sanctions imposed for breach of a protective order, precluded a finding of coverage under California law and gave rise to a claim for reimbursement by the professional liability insurer.