Author archive: badfaithblog

USSC Outlines Inherent Authority Sanctions Test for Bad Faith Conduct

Summary: The Haeger family sued Goodyear alleging the failure of a Goodyear tire caused the family’s motor home to leave the road and flip over. After the case was settled and dismissed, the Haegers’ lawyers learned that Goodyear had withheld testing data. The Haegers then sought attorney’s fees and costs as sanctions for the discovery…

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

Summary: 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…

Fraud and Collusion Defeat Logger’s Attempt to Enforce West Virginia Consent Judgment

Summary: 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…

Let the Jury Decide: Were Medical Expenses Withheld in Bad Faith?

Summary: Plaintiff sued Liberty Mutual for breach of contract and breach of the duty of good faith and fair dealing when Liberty Mutual refused to pay medical expenses incurred for transfer to a trauma center. Liberty Mutual claimed the transfer and extra costs were unnecessary. The trial court granted Liberty Mutual summary judgment finding as…

Sandberg Phoenix will be one of the Sponsors at the DRI Insurance Bad Faith and Extra-Contractual Liability Seminar

Sandberg Phoenix Insurance Chair Phil Graham and attorneys Aaron French, Ken Goleaner, and Tony Martin will be attending the DRI Insurance Bad Faith and Extra-Contractual Liability Seminar in Boston May 31 – June 2. Sandberg Phoenix is once again one of the sponsors. We hope to see you in Boston.

Alaska Insurers Face Potential New Claims Handling Tort

Summary: A driver lost control of his truck and crashed into a cabin causing property damage, including a heating fuel spill, and personal injuries to the cabin’s owner. The cabin’s owner brought suit against the driver and his insurer alleging in part that the insurer took charge of and negligently handled the fuel spill cleanup….

Texas Law Firm’s Coverage and EC Awards Properly Reduced from $33M to $28M

Summary: OneBeacon Insurance Company (OneBeacon) provided professional liability insurance to T. Wade Welch & Associates (Welch Firm) and firm attorneys, including Ross Wooten (Wooten). After a legal malpractice award against the Welch Firm which OneBeacon refused to settle, the Welch Firm filed common law and statutory bad faith claims against OneBeacon on which it prevailed….

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

Summary: 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…

Florida Consent Judgment Was Negotiated in Bad Faith

Summary: The Eleventh Circuit considered whether the insurer was bound by a settlement agreement between a homeowner’s association insured and a homeowner, settling the homeowner’s claim for attorneys’ fees by stipulating the homeowner would not enforce the resulting consent judgment against the homeowner’s association. The Eleventh Circuit found these Florida Coblentz Agreements unenforceable against insurers…

Eleventh Circuit Sorts Out “Mess” Involving Consent To Settle and Florida Sovereign Immunity Statute

Summary: The insured, a county in Florida, and personal representative of deceased accident victim’s estate brought a declaratory judgment action against the County’s excess insurer seeking a declaration the County was allowed to settle the personal representative’s underlying wrongful death claim without the excess insurer’s consent and without the Florida legislature passing a special claims…

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