The nation’s premier blog focused exclusively on claims of bad faith and extra contractual damages, the Bad Faith Blog discusses current issues and highlights best practices in an increasingly complex area of law.

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No Pay for Delay Today: Insurer’s Joint Check Satisfied Prompt Payment Statute

Summary: Property Gusma Properties owned and insured was damaged in Hurricane Ike. When the insurer demanded an appraisal, Gusma hired an attorney to assist. Following the appraisal award, the insurer tendered a check to the attorney for the full amount, all of which the attorney retained. Gusma sued the attorney and the insurer to recover…

Tennessee Fire Loss Victim’s Statutory Bad Faith Penalty Appropriately Awarded

Summary: Brandi Burge’s mobile home and all of its contents were destroyed by fire in July 2013 while insured by Farmers Mutual of Tennessee. Farmers Mutual paid an advance in August 2013, but denied the claim without disclosing why. Suit was filed one year later.  After 10 months of discovery Farmers Mutual declared (in discovery…

New Missouri Law Levels The Playing Field For Insurers

On April 26, 2017, the Missouri General Assembly passed a bill modifying certain statutory provisions relating to settlement of tort claims. The bill, known as HB 339 and HB 714, grants certain rights to insurers when a claimant and tortfeasor enter into a contract to limit recovery pursuant to R.S.Mo. § 537.065 and imposes new…

Excess Settlement Did Not Expose Massachusetts Excess Carrier to Contractual or EC Liability

Summary: Salvati’s husband died as a result of a work injury. Ms. Salvati sued several parties she believed responsible for her husband’s death. The parties in the underlying action and their primary carrier agreed at mediation to a $6,000,000 settlement. The primary carrier tendered its $1,000,000 in coverage, but the excess carrier (American Insurance Company…

No Independent Cause of Action for Stand Alone Regulatory Violations of Washington’s Insurance Fair Conduct Act

Summary: Perez-Crisantos sustained injuries resulting in more than $50,000 in medical bills. After settling with the underinsured motorist (UIM) and collecting $10,000 in medical expenses and $400 in lost wages under the PIP coverage from State Farm, his insurer, he sought additional funds from State Farm, claims which eventually went to arbitration. The arbitrator largely…

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.

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The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation.
This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship. © 2014 Sandberg Phoenix & von Gontard P.C. All Rights Reserved.

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