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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
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 11, 2017

Virginia Insurers Owe No Pre-Judgment Duty To Evaluate, Adjust And Settle UM Claims

Manu, a GEICO insured, filed suit against his uninsured motorist (UM) insurance carrier to recover for statutory bad faith failure to pay the UM policy limit until after the insured obtained a judgment against the uninsured tort-feasor. The insured’s bad faith claim was dismissed. The Supreme Court of Virginia affirmed the dismissal finding the insurance company owed no duty to settle the insured’s demand until the insured obtained a Judgment against the uninsured tort-feasor. Therefore, the insured had no claim subject to the covenant of good faith until the insurance carrier had a contractual liability to pay the UM claim.

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.

Bad Faith Blog
May 9, 2017

Wisconsin Insurer’s Thorough, Adequate, and Timely Investigation and Proper Settlement Negotiation Tactics Bar Bad Faith and Statutory Pre-Judgment Interest Claims

Elizabeth Baires was in a car accident with an underinsured driver while insured by State Farm. After State Farm consented to settling with the underinsured motorist for its $100,000 limits, plaintiff and her husband demanded that State Farm settle her claims for the $200,000 UIM stacked limits. State Farm refused her demand, leading to plaintiff and her husband filing suit for breach of contract, loss of consortium, and bad faith refusal to pay plaintiff’s claim. Thereafter, the federal district court granted State Farm’s motion for partial summary judgment on the bad faith claim.

Bad Faith Blog
June 28, 2016

Under Ohio law, Bad Faith Claims Can Be Brought Against Insurers Even If There Is No Basis For Coverage

Summary: James Glenn and Latia Ballard were injured in a car accident on February 6, 2001. Glenn was driving and Ballard was a passenger. Both qualified as insureds under Glenn’s policy issued by Nationwide. Glenn and Ballard both submitted claims on the policy’s medical benefits coverage, which provided up to $5,000 to pay for medical services. At first, Nationwide allowed Glenn’s claim and issued him a check. After Glenn’s attorney returned the check asking that be made out to the medical provider, Nationwide denied both Glenn’s and Ballard’s claims.