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.

Click here to select blog entries by U.S. state.

Insurer Not Liable For Bad Faith Where No Payment Was Obligated Under The Terms Of The Insurance Contract

Summary:  In Davis, the Texas Court of Appeals affirmed that no breach occurred when the insurer denied a claim that the jury ultimately found did not exceed the insured’s deductible. Without a breach, no “extra-contractual claims” could exist, including for bad faith. Davis v National Lloyds Insurance Company Davis, the insured, purchased a building in…

Insurer’s Failure to Reassess Value of Claim Results in Bad Faith

Summary: Bamford filed suit against Regent to recover for bad faith after Regent refused to settle a car accident case within its $6 million policy limit leading to an adverse verdict and judgment for $10.6 million. At trial in the bad faith case, the jury awarded the Bamford approximately $2 million. On appeal, the court…

Wisconsin Supreme Court: When Subrogating Insurers Aren’t Required to Make Insureds Whole

Summary: Dufour, a motorcyclist insured by Dairyland Insurance Company, was seriously injured while riding his motorcycle, collected full policy limits from the tortfeasor for his bodily injuries and full property damage (PD) and underinsured (UIM) bodily injury (BI) limits from Dairyland, and then sued Dairyland for bad faith when it refused to pay him the…

Florida Jury’s Verdict 130 Times the Policy Limits, But No Bad Faith

Summary: Liberty Insurance insured Lisa Mottsey had loaned her car to her daughter who in turn let her boyfriend drive. While driving down a county road Mottsey’s car was passed by Zisa driving at a “reasonable speed.” Zisa struck three pedestrians walking side-by-side down a dark county road wearing dark clothes without any illumination resulting…

Range of Valuations Support Bad Faith Summary Judgment for Insurer

Summary: State Farm issued an uninsured motorist policy to Enrique with a $100,000 limit. Enrique was injured in an auto accident, sought UM benefits and also sought to recover bad faith damages. The bad faith portion of the case was stayed pending resolution of the UM claim which resulted in a jury verdict awarding $260,000….

Proper Brandt Fees Usage to Calculate Punitive Damages in California Bad Faith Cases

Summary: Stonebridge Life provided hospital indemnity coverage to Nickerson who was hospitalized for 109 days after a severe leg fracture. The trial court directed a verdict for Nickerson on the breach of contract claim, entered judgment on the jury verdict for breach of the implied covenant of good faith and fair dealing, and imposed a…

Montana UTPA Claim Properly Dismissed

Summary: Ibsen, Inc., the owner and operator of an urgent care medical clinic filed a four count complaint against a health insurance company, Caring For Montanans, and others, alleging violations of Montana’s Unfair Trade Practices Act (UTPA) and alleged common law counts for breach of fiduciary duty, breach of contract, and unjust enrichment. The Montana…

Check Out A.M. Best Insurance Law Podcast Featuring Aaron French and Phil Graham Discussing Missouri Bad Faith Law

Summary: A.M. Best and Best’s Recommended Insurance Attorneys and Adjusters has released the latest installment of the Insurance Law Podcast, a series that examines timely insurance issues from an attorney’s point of view. We explain why Missouri is quickly becoming known as a risky state for insurers handling third-party claims and details carriers’ options in…

Delaware Bad Faith Claims Accrue When Excess Judgment Becomes Final and Unappealable

Summary: State Farm rejected an injured car driver’s $35,000 offer to settle against State Farm’s insured who admitted negligence. The trial resulted in a judgment for nearly $225,000, well above the $100,000 per person limit. The Delaware trial court dismissed the resulting bad faith claim on statute of limitations grounds, relying on an earlier unpublished…

Colorado Supreme Court Vacates Bad Faith Verdict

Summary: A serious injury construction accident resulted in the general contractor seeking indemnity from its subcontractor, Stresscon. When Travelers did not settle the general contractor’s claim, Stresscon settled and then sued Travelers for bad faith. The Colorado trial court entered judgment on the bad faith jury verdict against Travelers, the Court of Appeals affirmed, but…

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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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