bad faith News

Insurers Win 1 Bad Faith Case, Lose Another Before Fla. Appellate Courts

Remember George Costanza’s trick in “Seinfeld,” the 1990s TV sitcom? When he couldn’t (or didn’t want to) pay his rent or other expense he would conveniently “forget” to sign the check, buying himself a little more time. In a South …

Viewpoint: New Year’s Resolutions For Handling Short-Fuse Settlement Demands

The holidays — parties, family, and the spirit of giving. Some personal injury plaintiff’s attorneys really get into the spirit, hoping to receive the gift of “open” policy limits and unlimited injury recoveries by making short-fused settlement demands, that are …

11th Circuit: Insurer Missed Deadline to Remove Bad Faith Case to Federal Court

Darryl A. Vachon did not accuse Travelers of bad faith in handling his $25,000 uninsured motorist claim until after a jury found he had incurred $1,022,780 in damages. Because he didn’t, the insurer must now defend itself against a million-dollar …

Wash. Supreme Court Reverses, Finds $1.7 Covenant Settlement Reasonable

An insurer that refused a $399,000 settlement offer may have to pay more than $1.7 million because of a settlement that was made separately between its policyholder and an aggrieved customer, under a unanimous decision by the Washington Supreme Court …

After Refusing $30K Settlement Offer, Bad Faith Suit May Cost GEICO $2.7M

More than eight years after Bonnie Winslett tore up and threw away a summons that notified her she was being sued, the Georgia Supreme Court is being asked to resolve questions of law that will determine whether GEICO Indemnity Co. …

Insurer Paid Claim to Avoid Bad Faith; Reimbursed Because of Misrepresentation

The 10th Circuit Court of Appeals endorsed a clever way for an insurer to avoid a bad faith claim where there were potential misrepresentations in the policy application. In Evanston Insurance Company v. Aminokit Labs, Inc., the court affirmed a …

Insurer’s Quick Investigation of Exotic Dancer’s Claim Costs it More Than $5.4 Million

In November 2010, Kailee M. Higgins downed 15 shots of tequila during her Saturday night shift as a dancer at Centerfolds II in Worcester, Mass. She was only 20 at the time. Higgins texted a friend that she was “maadd …

7th Circuit: Appraisal Should Have Ended Dispute Over Roof Replacement

When managers of the Villas at Winding Ridge in Indianapolis asked a contractor to assess the condition of the 33 roofs in the condominium complex, they learned that a hailstorm the year before had damaged soft metal parts, fascia and …

Viewpoint: Equitable Subrogation Useful Tactic When Insurer Won’t Settle

Every policyholder will likely face a scenario where its primary insurer refuses a settlement offer within limits. The primary insurer is potentially liable for that excess verdict if it acted in bad faith by refusing to settle within limits. Sometimes, …

3rd Circuit: Policy to Limit Extended Transportation Expenses May be Bad Faith

Kyle and Marie Stechert say they rushed to buy another car after their vehicle was “totaled” in an accident because their insurance carrier refused to keep paying for their rental vehicle. The new car was twice as expensive as the …