Category archive: Washington

Tri-Partite Relationship Did Not Result in Bad Faith Exposure

Summary: The insureds sued their homeowners’ insurer and the defense attorneys hired by the insurer alleging bad faith in handling their claim, legal malpractice, and breach of fiduciary duty. The insurer resolved the bad faith claim by funding a settlement of the underlying third party claim. The Court of Appeals affirmed judgment entered in favor…

Washington Jury Verdict Finding Title Insurer Did Not Act in Bad Faith Affirmed

Summary: Plaintiff sued title insurer upon learning of burdensome recorded easement after purchase of property. Plaintiff sought recovery for breach of contract as well as under the Consumer Protection Act, The Insurance Fair Conduct Act, negligence, and breach of the duty of good faith. Prior to filing suit, Plaintiff sought $125,000 based on diminution in…

Attorneys’ Bad Faith Prosecution of Bad Faith Claims Warrants Sanctions

Summary: Federal law provides for the imposition of sanctions against attorneys who unreasonably and vexatiously cause an opponent to incur excess costs and fees.  A bad faith finding is required to impose those sanctions.  In the Nielsen case, the plaintiff’s attorney filed a lengthy complaint alleging eleven causes of action and that ERISA did not…

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….

Washington Insurer Gets to Depose Opposing Insurer’s Coverage Counsel

Summary:  A Washington homeowners association filed suit against Derus Wakefield II, LLC for property damage at a condominium project. Derus tendered the suit to the association’s insurer, QBE, which denied the tender for defense at which point Everest agreed to defend under a reservation of rights. It then sued QBE arguing it had a duty…

Get the Denial Right or Pay the Price

Burlington Insurance Company’s denial of the tender to defend additional insured Tim Ryan Construction was deemed a breach of contract, found to be in bad faith, and in violation of Washington’s Insurance Fair Conduct Act (“IFCA”) entitling Tim Ryan Construction to recover attorney’s fees plus an increase in the total award of damages to be…

What a Mess! — Insurer Has No Right to Jury Trial to Determine if Settlement Between Its Insured and Claimant Was Reasonable

Summary: After the insurer denied a settlement demand for the $2 million policy limits, the insured, a plumbing contractor, and the land owner plaintiff (“claimant”) reached a settlement agreement for approximately $3.75 million. The trial court judge determined that the settlement was reasonable. The insurer appealed arguing it had a right to a jury trial…

Scottsdale Insurance Has No Coverage or Bad Faith Exposure for Painless Steel’s Painful Body Piercing Activity

Summary: A Painless Steel customer was injured due to a body piercing. The co-owners of Painless Steel had foregone the expense of insuring it so the commercial liability insurer for one of the individual owners had no duty to defend or indemnify the LLC and had no bad faith exposure. Burns v. Scottsdale Insurance Company,…

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