Skip to content

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 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
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.

Bad Faith Blog
July 6, 2017

New Missouri Law Levels The Playing Field For Insurers

On April 26, 2017, the Missouri General Assembly passed a bill modifying certain statutory provisions relating to settlement of tort claims. The bill, known as HB 339 and HB 714, grants certain rights to insurers when a claimant and tortfeasor enter into a contract to limit recovery pursuant to R.S.Mo. § 537.065 and imposes new requirements on time-limited demands in R.S.Mo. § 537.058. Governor Greitens signed the bill on July 5, 2017 and it will be effective August 28, 2017. This legislation is designed to limit currently legal, but abusive, practices against insurers in an effort to reform insurance “bad faith” litigation in Missouri.

Bad Faith Blog
June 4, 2017

Fraud and Collusion Defeat Logger’s Attempt to Enforce West Virginia Consent Judgment

Injured logger, as an assignee of claims by a timber lessee and land owner, brought an action against his employer’s liability insurer to recover a consent judgment for the $1M policy limits. After the trial court entered summary judgment in favor of the logger, the employer’s insurer appealed. The Supreme Court of Appeals of West Virginia found the consent judgment was not binding on the insurer because it was not a party to the underlying suit and the settlement and assignment were void for fraud and collusion.