Bad Faith Blog

In Scottsdale Ins. Co., et al. v. Addison Ins. Co., et al., No. WD75963 (Mo.App.W.D. Oct. 1, 2013), a “case of first impression,” the Missouri Court of Appeals both redefined the elements of a third-party bad faith failure to settle claim and recognized for the first time an excess carrier’s right to pursue a primary carrier under a theory of equitable subrogation to recover for a primary insurer’s bad faith failure to settle.

In a first-party insurance dispute, a Florida trial court entered a discovery order compelling disclosure to the insured of portions of the insurer’s claim file. The Florida Appellate Court reversed the trial court’s order, finding error in compelling disclosure of the insurer’s claim file because the coverage issue was still in dispute.