Bad Faith

News & Analysis as of

Liability for breach of obligations

Resolution of the Plenum of the Supreme Court of the Russian Federation No. 7 dated 24 March 2016 'On courts applying certain provisions of the Civil Code of the Russian Federation concerning liability for a breach of...more

Wisconsin Supreme Court Holds Insurer Is Entitled To Subrogation Despite Fact That Insured Was Not “Made Whole”

In Dufour v. Progressive Classic Ins. Co., 2016 WI 59 (Wis. 2016), Dairyland Insurance Company’s insured sustained physical injuries and damage to his vehicle following an automobile accident with an underinsured tortfeasor....more

Fraudulent Joinder & Bad Faith – Explaining Another Removal Muddle

Here’s some more inside baseball on grounds for removing cases from state to federal court. In brief, the issue is this: does the “bad faith” standard added to the removal statute (28 U.S.C. §1446(c)(1)) in 2011 approximate...more

No Right to Diminution in Value Damages Following First Party Payment for Costs of Vehicle Repair

In Baldwin v. AAA Northern California (No. A142217, filed 6/13/16), a California appeals court upheld an order sustaining an insurer’s demurrer without leave to amend, dismissing a breach of contract and bad faith lawsuit...more

Rising Tide of State-Enacted Patent Reform

It started with Vermont in 2013. Since then, over half the states have enacted legislation aimed at curbing patent infringement suits from non-practicing entities. Now, the band may add another member: Massachusetts....more

Subrogation recovery did not violate the made-whole-rule and was not in bad faith per Wisconsin Sup. Ct.

It is highly unusual to find an insurance bad faith case which stems from an insurance company’s subrogation recovery. On July 6th, Wisconsin’s highest court had such a case, reversing the appellate court and holding that...more

Real Property & Title Insurance Update: Weeks Ending June 24 & July 1, 2016

REAL PROPERTY UPDATE - Foreclosure/Leave to Amend: borrower should have been granted leave to amend to assert affirmative defenses pursuant to motion filed 13 days before trial because there was no prejudice, the...more

Insurance Coverage – Genuine Dispute as Defense to Bad Faith

Clayton D. Paslay, et al. v. State Farm General Insurance Company - Court of Appeal, Second Appellate District (June 27, 2016) - Under the genuine dispute doctrine, an insurer denying or delaying the payment of...more

Genuine Dispute Defeats Both Bad Faith and Elder Abuse

The Paslays sued State Farm for failing to pay a portion of the damage caused to their Pacific Palisades house by a heavy rainstorm and for forcing them to move back into the house while it was still under construction. The...more

Extending the Reach of Octane Fitness Under the Lanham Act **WEB ONLY**

The US Court of Appeals for the Fifth Circuit adopted and applied the Supreme Court of the United States’ rationale for an award of attorneys’ fees in patent cases to a trademark case. In doing so, the Fifth Circuit aligned...more

The Punishing Effect of Rule 11

Federal courts correct bad litigation behavior, eventually. People take being sued personally, and lawsuits can take an emotional toll on defendants, whether as an individual or as a representative of an employer. Anger...more

California's First District holding closes loophole for evading removal jurisdiction in insurance coverage declaratory relief...

California law has long held that the parent and controlling shareholder of an insured corporation has no standing to sue for breach of contract or bad faith under an insurance policy issued to the corporation. In a published...more

Illinois Appellate Court Holds That Legal Malpractice Claim Was Barred by Six-Year Statute of Repose, and Collateral Estoppel...

Prospect Development, LLC, et al v. Donald Kreger and Schiff Hardin, 2016 IL App (1st) 150433 - Brief Summary - Plaintiff sued a lawyer and his law firm for alleged legal malpractice arising out of the collapse of a...more

D.C. Circuit Affirms NLRB’s Order to Employer to Reimburse All of Union's Bargaining Expenses as Remedy for Unfair Labor Practices

In HTH Corporation v. NLRB, the U.S. Court of Appeals for the D.C. Circuit rejected the National Labor Relations Board’s attempt to expand the remedies under the National Labor Relations Act for unfair labor practices to...more

Bad Faith Defense Themes

Anyone who has defended an insurance carrier realizes that the general public, and thus juries, initially believe that companies are looking for ways to deny claim payments. Whether the facts or coverage language justify the...more

The Advantages of Removal: Twombly and Iqbal Applied to Bad Faith Claims

This month, the Eastern District of Pennsylvania issued an opinion that reminds insurance carriers and their counsel that it is often beneficial to remove certain cases to federal court. While federal court offers many...more

Genuine Dispute Over Cause of Damage and Insureds’ Demolition Before Inspection Negate Bad Faith and Elder Abuse Claims

In Paslay v. State Farm General Ins. Co. (No. B265348, filed 6/27/16), a California appeals court found triable issues of fact regarding whether State Farm breached its contract in paying a water loss, but affirmed summary...more

Eighth Circuit to insurers: Settlement evaluation must constantly adapt to litigation developments

A recent decision of the US Court of Appeals for the Eighth Circuit taught an insurer a costly lesson about trying to avoid extra-contractual liability: Insurers must constantly reevaluate their settlement position throughout...more

Colorado Supreme Court Limits Use of Extrinsic Evidence and Reasonable Expectations Doctrine

On Monday, the Colorado Supreme Court issued its decision in American Family Mut. Ins. Co. v. Hansen, No. 14SC99 (Colo. June 20, 2016), holding that extrinsic evidence can only be used to interpret ambiguous policy language,...more

Everest Indemnity Insurance Company v. Rea Rejects Implied Waiver Of The Attorney-Client Privilege

As it stands now, the majority decision in Everest is clear: No implied waiver of the attorney-client privilege occurs where adjusters themselves make the claims decisions and do not rely on the advice of counsel to form...more

California Supreme Court Holds That Brandt Fees Awarded Post-Trial By A Court Must Be Included In Denominator Of...

On June 9, 2016, the California Supreme Court issued its decision in Nickerson v. Stonebridge Life Insurance Co., holding that so-called Brandt fees should be treated as compensatory damages when calculating the ratio of...more

JSH Reporter - Summer 2016

We are excited to announce the launch of our Summer 2016 JSH Reporter! The JSH Reporter is designed to provide information about changes in the law and how these affect a variety of industries. In this issue, you will...more

Spoliation Claims Are Not a Recreational Vehicle to Be Raised at Any Time in a Case

LaFerrera v. Camping World RV Sales of Birmingham, No. 15-00473 (N.D. Ala. Mar. 21, 2016). Relying on state law, the court rejected a request for spoliation sanctions included as part of a motion for summary judgment...more

The Attack on Attorney-Client Privilege in Insurance Cases

Policyholder lawyers are a creative group. One of the more recent manifestations of this creativity is the attempt to attack the attorney-client privilege in the context of insurance coverage disputes. While these attacks...more

Insurance – Bad Faith – Punitive Damages

Thomas Nickerson v. Stonebridge Life Insurance Company - California Supreme Court (June 9, 2016) - Absent special justification, ratios of punitive damages to compensatory damages that greatly exceed 9 or 10 to 1...more

503 Results
|
View per page
Page: of 21
JD Supra Readers' Choice 2016 Awards

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×