bad faith News

S. Carolina Insurer’s Bad Faith Causes $27M Loss from Policies with $2.5M Limit

Jose Castillo didn’t ask his insurance company to defend him from a lawsuit that alleged his shoddy construction caused millions of dollars in water damage to a townhouse project, so his insurer didn’t provide a defense. That turned out to …

Houston Plaintiffs’ Attorney Sanctioned for ‘Groundless’ Lawsuit Against Insurer

A Texas judge has ordered a Houston plaintiffs’ attorney to reimburse an insurer $137,000 for the legal fees it expended to defend itself against a “frivolous” and “groundless” lawsuit that was filed “solely for the purpose of harassment.” Harris County …

Viewpoint: Insurer Not Prejudiced Despite 4 Requests for Examination Under Oath

A claimant’s refusal to respond to four requests by her insurer to sit for an examination under oath was not enough to persuade a federal judge in Louisiana that she had forfeited coverage. After two hurricanes, plaintiff Diana Stevens-Reynolds sought …

Jurors Urged to Impose Heavy Punitive Damages in J&J Talc Trial

Lawyers for a California man who says he developed a rare cancer from exposure to asbestos in Johnson & Johnson’s JNJ.N talc-based baby powder on Monday urged a jury to order the company to pay heavy punitive damages, calling its …

Morakabian and Rosales Signal a Consensus View on Recovery of Attorneys’ Fees After Appraisal

Chapter 542 of the Texas Insurance Code, also known as the Texas Prompt Payment of Claims Act (“TPPCA”), generally allows an insured to recover interest and attorneys’ fees, in addition to the amount of the insurance claim, when an insurer …

Claims People: Davies, Resilience and Clyde & Co.

Davies Appoints COO for US Division Davies, a global claims administrator that opened a US headquarters in Nashville, Tennessee in 2020, has appointed Jen Morrissey to the newly created position of group chief operations officer. Davies said Morrissey will assist …

11th Circuit Allows Bad Faith Claim Seeking $5M Excess Judgment to Proceed

The poorly executed handoff of a claims file from a retiring claims adjuster to his replacement may have made USAA liable for a $5.2 million excess judgment. A panel of the 11th Circuit Court of Appeals on Tuesday reversed a …

Judge Sanctions Facebook, Lawyers for Bad-Faith Discovery Fight

A federal judge in San Francisco ordered Facebook Inc. to pay $925,078.51 in sanctions for the “egregious conduct” of its attorneys while defending against a class-action consumer privacy lawsuit filed in the wake of the Cambridge Analytica scandal. “This case …

11th Circuit Affirms Bad Faith Verdict in Suit Filed by One Insurer Against Another

After a job-site injury left independent contractor Ernest Guthrie paralyzed below the waist, two insurers for the contractor that hired him agreed to pay the full policy limits — $1 million each — only one month after receiving a payment …

Nevada Supreme Rejects Subrogation Bid by Excess Insurer after Nightclub Beating

Bouncers at the Marquee Nightclub in Las Vegas assaulted David Moradi and thew him out of the club after he ran up a $10,000 bar bill and got into an argument with a waitress about his credit card. Big mistake. …