Bad Faith Blog

An insurer is required to know the law, and to fulfill any obligations that would exist even in its “least coverage” scenario. The Louisiana Court of Appeal found an insurer committed bad faith by failing to pay a statutorily-mandated amount despite pending litigation involving the matter that could result in reimbursement in excess of that amount. The Court required the insurer to pay the minimum due first, unless there exists a legitimate concern the statutory minimum is not owed at all. The fact that more might be owed does not amount to such a concern.

On September 9, 2014, the Missouri Supreme Court unanimously struck down the State’s punitive damage cap in Lewellen v. Franklin, 2014 WL 4425202 (Mo. banc Sept. 9, 2014).