Bad Faith

News & Analysis as of

Ninth Circuit Reverses Insured’s Summary Judgment Win Concluding that Insurer’s Negligence is Insufficient to Breach Implied Duty...

McDaniel v. Govt. Empls. Ins. Co., No. 14-17203, 2017 WL 892516 (9th Cir. Mar. 7, 2017) - On cross-motions for summary judgment, the District Court for the Eastern District of California ruled in favor of Amy McDaniel,...more

A Not-So-Modest Proposal: Class Action Changes Could Have Big Impact

Like many things these days, the legal landscape is changing. One target is class action litigation. Some important new proposals have the potential to dramatically alter class actions in the near future. In particular, these...more

Delaware Supreme Court Affirms Dismissal Of Caremark Action For Failure To Plead Bad Faith With Particularity

On March 3, 2017, the Supreme Court of the State of Delaware affirmed the dismissal of “Caremark” claims for alleged bad-faith failure of oversight brought derivatively by a stockholder against the directors of Qualcomm, Inc....more

Delaware Supreme Court Affirms $7 Million Sanction for Discovery Misconduct: eDiscovery Case Law

In Shawe v. Elting, Case No. 487, 2016 (Supreme Court of Delaware, Feb. 13, 2017), the Delaware Supreme Court found that the Court of Chancery followed the correct legal standards and made no errors of law in its sanctions...more

Aviation Happenings - Winter 2016-2017 Part 2

Part 2 of the winter edition of the Aviation Group’s newsletter examines some of the most recent and relevant cases and developments in aviation law, including: - Supreme Court Affirms Presumption Against Preemption...more

Court Of Chancery Sanctions Litigant For Fabricating Evidence And Violating Orders In LLC Dispute

This case involves the unfortunate deterioration of a marriage, as well as the couple’s winery venture, carried on through various LLCs. The decision illustrates the seriousness with which the Court of Chancery views the...more

Spoliation of Truck Evidence Precludes Plaintiffs’ Use of That Evidence “As a Sword”: eDiscovery Case Law

In Below v. Yokohama Tire Corp., No. 15-cv-529 (W.D. Wisc. Feb. 27, 2017), Wisconsin District Judge William M. Conley, deciding on several pre-trial motions, granted (to an extent) the defendants’ motion for relief due to...more

Butler Quarterly - Winter 2017

Two recent federal cases highlight the challenges practitioners face in presenting expert claims handling testimony in bad faith litigation under the Daubert standard. In the first case, a court excluded such expert testimony...more

Judge Finds Defense Counsel’s Reliance upon Pre-Amendment Rule 26 in a Motion to Compel the Equivalent of Bad Faith – Resulting in...

In Fulton v. Livingston Financial LLC, 2016 WL 3976558 (W.D. Wash. July 25, 2016), U.S. District Judge James L. Robart sanctioned a defense lawyer who “inexcusabl[y]” relied on outdated case law and pre-2015 amendments to...more

Summary of California Appellate Decisions - February 2016

INSURANCE; BAD FAITH; GENUINE DISPUTE DOCTRINE - Paslay v. State Farm General Insurance Co. (2016) 248 Cal.App.4th 639 203 Cal.Rptr.3d 785 - FACTS: State Farm issued a homeowners policy to Paslay, the...more

Appeal Court Revives Class Action against the WSIB

The Ontario Court of Appeal has revived a proposed class action brought by the appellant, Pietro Castrillo, on behalf of a class of injured workers whom he alleges have been wrongfully denied the full extent of benefits to...more

Delaware Supreme Court Affirms Sanctions Award

The Supreme Court affirmed perhaps the largest award of attorney fees as a sanction for bad conduct in Delaware’s history in this very unusual decision. It is a good summary of when a Court may depart from the “American...more

Third Circuit Affirms Rescission of $25 Million Contaminated Products Policy

In H.J. Heinz Co. v. Starr Surplus Lines Ins. Co., No. 16-1447 (3d Cir. Jan. 11, 2017), the Third Circuit affirmed a District Court’s order allowing insurer Starr Surplus Lines Insurance Company (“Starr”) to rescind a $25...more

How to Avoid the Implied Waiver of the Attorney-Client Privilege In Arizona Insurance Bad Faith Cases

In State Farm v. Lee, 199 Ariz. 52, 13 P.3d 1169 (2000) (En Banc), the Arizona Supreme Court first held that an Insurer can impliedly waive the attorney-client privilege (the “Privilege”) in a bad faith case, despite not...more

Guidelines to Assist an Insurer’s Analysis of Whether a Court Will Find an Implied Waiver of the Attorney Client Privilege in...

Because Arizona cases touching on this issue are copious, confusing, and complex, we note the following guidelines—though sometimes conflicting—have emerged from Lee and its progeny and will assist an Insurer’s analysis of...more

Tips to Avoid the Implied Waiver of the Attorney-Client Privilege in Arizona Insurance Bad Faith Cases

Although Arizona law regarding the implied waiver of the attorney-client privilege (the “Privilege”) is far from certain, an Insurer may avoid a waiver by following these tips...more

Eastern District of Pennsylvania: No Bifurcation Where Bad Faith Could Exist Independently of Breach of Contract

Eizen Fineburg & McCarthy, P.C. v. Ironshore Specialty Ins. Co., No. 2:16-cv-02461-JHS, 2017 WL 194226 (E.D. Pa. Jan. 18, 2017)? - On January 30, 2011, law firm Eizen Fineburg & McCarthy, P.C. (“the Firm”), purchased a...more

Washington Supreme Court Limits “Insurance Fair Conduct Act” — Three Things Insurers Must Know

On Groundhog Day 2017, the Washington Supreme Court issued its first major opinion interpreting the state’s 2007 “Insurance Fair Conduct Act” (IFCA). The decade-old legislation had caused shockwaves among insurers when its...more

Florida Appellate Court Rejects Jury’s Bad Faith Verdict

It feels like a black swan event: last month, in GEICO Gen. Ins. Co. v. Harvey, No. 4D15-2724 (Fla. Ct. App. Jan. 4, 2017), a Florida appellate panel unanimously overturned a jury verdict, on the ground that the plaintiff’s...more

First Department Confirms Hedge Funds Did Not Act in Bad Faith and Affirms Multi-Million Dollar Judgment Against CDS Counterpart

In Good Hill Master Fund L.P. v. Deutsche Bank AG, No. 600858/10-2188B, 2017 BL 19363 (App. Div. 1st Dep’t Jan. 24, 2017), the First Department unanimously affirmed a judgment entered in the Commercial Division of over $90...more

Delaware Chancery Court Throws Out Claims Over $10 Million Severance Payment to CEO

Seyfarth Synopsis: A Delaware Chancery Court judge last week dismissed a derivative complaint seeking to recover a $10 million severance payment made to a corporation’s former CEO because he found that plaintiff shareholder...more

Federal Court Holds California Insurance Code Bars Duty to Defend Against False Claims Act Violations

The Central District of California held that Section 533 of the Insurance Code eliminated any potential for coverage for suit under the state False Claims Act. On January 4, the U.S. District Court for the Central...more

Delaware Law Updates - 2016 Year in Review

Our Delaware Corporate and Alternative Entity Law attorneys closely followed the opinions coming from Delaware’s Supreme Court and Court of Chancery. Our 2016 Year in Review is a collection of brief summaries of selected...more

Don't "Be Like Mike": The Importance of Registering Your Trademark in China

For companies that manufacture or sell their products in China, it is critical to register your trademarks with the Chinese trademark office as soon as practical. Unlike the United States, China is a first-to-file...more

Accrual of Statutes of Limitations in TX Bad Faith Claims

Every Texas building owner knows that shortly after a hail or wind storm the doorbell knockers will follow. These doorbell knockers are typically contractors or public adjusters, but may even now be attorneys (or their...more

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