bad faith News

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. …

Insurers Say ‘Bazooka’ of Bogus Boys Scouts Claims is Abuse of Bankruptcy System

A group of insurers – including subsidiaries of AIG, Liberty Mutual, Allianz, Sompo International, and Travelers – are challenging an approval of the Boy Scouts of America’s $2.46 billion bankruptcy reorganization plan to allow the organization to settle tens of …

Ariz Court: PTSD Claimant Missed Statute of Limitations for Bad Faith Claim

John C. France’s workers’ compensation claim cleared the way for Arizona first responders to receive workers’ compensation benefits for post-traumatic stress syndrome. But the former Gila County Sheriff’s Office sergeant cannot pursue a bad faith claim against the Arizona Counties …

Viewpoint: Thanksgiving Holiday Is No Excuse for Potential Insurer Bad Faith

Short-fuse, time-limited demands are structured by plaintiff’s attorneys to create the least amount of time for an insurer to respond. Often, short-fuse demands are made just before upcoming holidays with the hope that distracted insurance company adjusters are distracted and …

Plaintiff Given 2nd Chance at $12M Award After Insurer Ignores $10K Settlement Offer

A Florida accident victim gets a second chance to compel an auto insurer to pay a $12.7 million judgment as a consequence of failing to respond to a $10,000 settlement offer, under a decision Tuesday by a federal appellate court. …

Utah Supreme: Denying Claim Over Nude Photos May Cost Insurer Nearly $3M

UMIA Insurance refused to accept an $800,000 settlement in a malpractice suit against a plastic surgeon who shared nude before-and-after photographs of a patient’s body with a Fox News affiliate. The insurer could pay more than three times that amount …

Viewpoint: Insurers Maintain Unbeaten Record in Appellate Courts for COVID Claims

As we approach the end of the first quarter of 2022, things are still looking good for insurers in the COVID-19 coverage litigation battle. The issuance of various governmental orders requiring businesses to temporarily modify or close their operations led …

Conn. Supreme: Litigation Privilege Protects Insurer’s False Statements from Bad Faith Suit

False statements that Liberty Mutual made while preparing for a lawsuit relating to an underinsured motorist claim are protected by the litigation privilege and cannot be used to prove bad faith, the Connecticut Supreme Court ruled in a decision published …

Colo. Supreme Rules Adjuster Can’t Be Held Personally Liable for Denied Claim

A Colorado law that allows claimants to collect double coverage if a claim is unreasonably denied or delayed does not allow plaintiffs to hold claims adjusters personally liable, the state Supreme Court decided Monday. In a unanimous decision, the high …

Colo. Supreme Ct. the Latest to Decide if Claims Adjusters Can Be Held Personally Liable

For the third time in three years, a state supreme court is being asked to decide whether a claims adjuster can be held personally liable for bad faith. The Colorado Supreme Court on Jan. 11 heard oral arguments in a …