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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
February 6, 2020

Eleventh Circuit, applying Florida law, concludes a consent judgment does not satisfy the requirement of an excess judgment for a bad faith claim.

A commercial vehicle was involved in a motor vehicle accident resulting in paralysis to a passenger. The commercial vehicle was insured under a Garage policy and a Commercial Umbrella policy, with a total amount of potential coverage of $3 million. In addressing the causation element of a bad faith claim under Florida law, the Court addressed the “excess judgment rule” and concluded a consent judgment is not an excess judgment for purposes of a bad faith claim and does not fall within the three exceptions to the general rule that an excess judgment is required.

Bad Faith Blog
December 17, 2019

Hawaii Supreme Court: The Insurer’s Good Faith Claim Handling Duty Begins Before the Formal Claim Submission

The Supreme Court of Hawai’i’s recent opinion restated two important points of Hawai’i bad faith law: (1) the insurer’s good faith claim handling duty begins with the first communication with the insured, even before the formal claim submission and (2) the insurer’s compliance with the terms of the insurance contract can be insufficient to avoid bad faith liability. Therefore, in order to defeat a bad faith claim under Hawai’i law, the insurer must at all times act in good faith before and after the claim submission. The court restated this duty when reversing a summary judgment for a health insurer. Although it complied with the terms of the insurance contract following receipt of the formal claim, it arguably misled its insured in discussions prior to the claim.

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.

Bad Faith Blog
June 3, 2018

New Missouri Interpleader Law Caps Insurer Exposure for Multiple Claims

On June 1, 2018, legislation affording new protections to insurers when interpleading policy limits was enacted. The legislation, known as HB 1531, amends R.S.Mo. § 507.060, which governs the joinder of parties in an interpleader action. Specifically, the amendment modifies existing language with insurance-specific terminology and adds five additional subsections with definitions, procedural mechanisms for interpleader, and rights and limitations of an interpleading insurer.