Bad Faith Blog

Summary: Stefanie Hardacre struck and injured motorcyclist Grand Nelson. A third vehicle was also involved, but that driver’s insurer paid Nelson the policy limits of $100,000. Hardacre’s insurer, Progressive, determined that Hardacre was not at fault. Progressive denied Nelson’s claim; it had closed its investigation file three days after acknowledging receipt.

Summary: Landy Insurance Agency is a broker selling insurance to real estate professionals. Landy purchased a professional liability insurance policy from Utica Mutual Insurance Company.

Summary: Gary Coker was injured in a car accident after a vehicle driven by Donald Woodall crossed the center line and hit Coker head-on. Coker was driving a vehicle owned by his employer, Ansco & Associates. After filing suit against Woodall, Coker obtained a $5.5 million consent judgment. However, Woodall’s automotive insurance policy provided limits of only $25,000. Under Georgia law, which controlled in this case, Woodall qualified as an underinsured motorist due to his low policy limits.

Summary: After an evening of under-age drinking, Jacob Patton drove his father’s minivan while his friend, John Donaldson, rode in the passenger seat. When Jacob saw the sirens from a police car, he panicked and attempted to flee. After a short chase, Jacob lost control of the van and crashed into a tree. Donaldson was seriously injured and was hospitalized for almost a month. A blood analysis revealed Jacob had a blood alcohol content of .20.

Summary: After its insured, Lawrence Saks, wrongfully obtained disability benefits under his insurance policy, National Life Insurance Company sued Saks for fraud. Saks counterclaimed with a claim for breach of good faith and fair dealing. At trial, the jury returned a verdict in favor of National Life on its fraud claim and a zero-dollar verdict in favor of Saks on his counterclaim. Both sides appealed.