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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
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.

Bad Faith Blog
April 21, 2015

Triable Fact Issues on Washington Bad Faith Claims

Summary: Great American insured Bayley, a general contractor on a $12.3 million renovation project in Orange County, California. After its air conditioning subcontractor was found to have violated California’s prevailing wage law, the Community College District served Bayley with a “Notice of Withholding Contract Payments” as well as the procedural right to dispute the withholding. On cross-motions for partial summary judgment the district court found that Great American had a duty to defend which Great American had breached, but also found in favor of Great American on the statutory and non-statutory bad faith claims.

Bad Faith Blog
September 18, 2014

$2.5 Million EC Judgment Results from Findings of Sub-Standard Claims Handling

Summary: Bryan Blann and Garry Reed were involved in a double fatality motor vehicle accident. Reed was insured by American Standard Insurance with whom Blann’s widow, attempted to settle after the accident. When that failed, she took a judgment against Reed’s estate for over $2.5 million while agreeing not to execute judgment against the estate which assigned to Blann any rights it had against the carrier. Blann filed suit to seek a recovery of the full amount of the judgment from American Standard for negligent and bad faith handling of the insurance claim. The case went to trial before Kansas U.S. District Judge Carlos Murguia who entered judgment for $2.536 million. After concluding that the company breached its duties to its insured and its claims handling was negligent and/or in bad faith, Blann was awarded the amount of the underlying judgment, pre-judgment interest, and an award of attorney’s fees to be fixed after further hearings.

Bad Faith Blog
March 2, 2011

Bad Faith is Almost Always a Question of Fact

Summary: It is a question of fact as to whether an insurer who has a duty to investigate is guilty of bad faith when it asks insured to tell it if facts change such that it is exposed. Gordon Trucking operated a vehicle that was involved in a serious accident. Another vehicle crossed the center line hitting the Gordon vehicle and then the injured plaintiff’s vehicle. Gordon Trucking had the following coverages: