We cover current issues, highlights and best practices exclusively on claims of bad faith and extra contractual damages.
Massachusetts Appellate Court Holds Insurer Liable for Unfair Settlement Practices After Its Insureds’ Liability Became Reasonably Clear During Trial
Washington Supreme Court Holds Insurer that Breached its Duty to Defend in Bad Faith is Estopped from Denying Coverage Absent an Applicable Affirmative Defense
The insureds sued their title insurer alleging breach of the duty to defend after Indian tribes asserted their treaty right to harvest shellfish from insureds' tidelands. The Washington Supreme Court held an insurer’s breach of its duty to defend was in bad faith because the insurer’s arguable interpretation of Washington law was not consistent with the insurer’s obligation to provide its insured with the benefit of any doubt regarding a duty to defend.
Summary: In Moore, the Eleventh Circuit reversed the district court’s grant of summary judgment in GEICO’s favor. GEICO’s failure to submit an affidavit and detailed release requested by claimant’s counsel created an issue of material fact regarding its alleged bad faith conduct, precluding summary judgment.