Bad Faith

News & Analysis as of

When All Else Fails, Look to Fee-Shifting Statutes to Recover Attorney’s Fees

Your company is considering a lawsuit. Or maybe you’ve just been served with a summons and complaint. You’ve evaluated the strengths and weaknesses of the claims, and you’re confident that, when the case ends, you’ll be the...more

Insurance Recovery Law - July 2015

In the Context of a Bad Faith Claim, Insurer’s Defense That Coverage Denial Was Reasonable Put at Issue Otherwise Protected Attorney-Client and Work Product Communications - Why it matters: Recognizing the “conflicting...more

Appellate Watch: Eleventh Circuit Asked to Interpret Contractual Liability Exclusion In D&O Policy

Because insurers generally draft their own policies, it is a common rule of construction that ambiguous terms will be construed against the insurers. However, in Bond Safeguard Ins. Co. et al. v. National Union Fire Insurance...more

Expect Focus - ONLINE HEALTH CARE: NOT SO FAST Telemedicine Hits A Few Speed Bumps, Volume II, Spring 2015

In This Issue: - IN THE SPOTLIGHT • Risky Business: Common Cyber Security Risks, Expensive Consequences - LIFE INSURANCE • Ninth Circuit Finds Bonus Indexed Annuity Delivers Exactly...more

Intellectual Property Bulletin - Spring 2015

California’s Eraser Law: What IP Attorneys and Owners Need to Know - Hector recently graduated from UC Berkeley and is anxious about his upcoming job interview. He is about to enter the adult world. But he has also got...more

Florida Federal Court Limits First Party Bad Faith Claims

First party bad faith actions in Florida must be pursued under §624.155 Florida Statutes because Florida does not recognize common law first party claims. The statute provides that an insured may bring a civil action against...more

Third Circuit Holds That Under Pennsylvania Law An Insured Against Whom Punitive Damages Have Been Imposed May Not Recover Those...

As a matter of public policy, Pennsylvania (like a number of other states) prohibits insuring against punitive damages. But what happens if an insurer refuses to settle a case against a policyholder within policy limits and...more

WD-40 Squeaks By On Appeal Of Its Summary Judgment Win On “Long-Term Corrosion Inhibitor”

In Sorensen v. WD-40 Company, the Seventh Circuit affirmed the district court’s finding that the use of the term “inhibitor” for a rust-inhibitor product was not trademark infringement and constituted a descriptive fair use. ...more

Federal Judge Permits MPHJ’s Suit Challenging Vermont’s Bad Faith Patent Demand Letter Law To Proceed

We previously discussed the Vermont attorney general’s enforcement action against MPHJ Technology Investments, LLC, a non-practicing entity that has recently been the subject of regulatory scrutiny. The attorney general’s...more

IKEA Wins in pimpmyikea.com and Thirty Other Domain Name Challenges

Ikea Systems BV of the Netherlands filed with the World Intellectual Property Organization (WIPO) for the transfer of multiple domain names registered by Michael Herman, an individual located in North Carolina. These domains...more

Florida Supreme Court Holds Insurer Immune from Bad Faith Claims

On May 14, 2015, the Florida Supreme Court held that a government-created insurance company, Citizens Property Insurance Corporation, was immune from statutory first-party bad faith claims. The Florida Legislature created...more

When the Federal Govt acts badly, but not badly enough to show bad faith – what’s a contractor to do?

In the prior issue of this newsletter, we included an article on the high standard of proof and the practical considerations for a federal government contractor claiming that the federal government acted in bad faith in its...more

Florida’s Immune System: No First-Party Bad Faith Claims Against The State-Created Property Insurer

Earlier this month, in Citizens Property Insurance Corp. v. Perdido Sun Condominium Association, Inc., No. SC14-185 (Fla. May 14, 2015), the Supreme Court of Florida held that the immunity from suit granted to Citizens under...more

Citizens Property Insurance Corporation Immune to Statutory Bad Faith Claims

The Florida Supreme Court has decided unanimously that the Florida legislature did not intend for Citizens Property Insurance Corporation (a state-created entity that provides property insurance) to be liable for statutory,...more

Trade Secrets Misappropriation Suit Over Solicitation of Employees - Cypress Semiconductor Corporation v. Maxim Integrated...

In Cypress Semiconductor Corporation v. Maxim Integrated Products, Inc., the California Court of Appeal affirmed a trial court’s award of $180,817.50 in attorneys’ fees plus costs to Maxim Integrated Products, Inc. as the...more

Florida High Court Finds State Insurer Immune From Statutory Bad Faith Claims (updates article posted on Oct. 31, 2014)

After its property was damaged by a hurricane, Perdido Sun Condominium Association filed an insurance claim with Citizens Property Insurance Corp., a state-created entity that provides property insurance. Perdido Sun was not...more

California Court of Appeals Awards Attorneys' Fees to Defendant For Misappropriation of Trade Secrets Claim Brought in Bad Faith

A California appellate court recently affirmed the trial court’s ruling in Cypress Semiconductor Corporation v. Maxim Integrated Products, Inc. that the defendant (“Maxim”) was entitled to attorney’s fees under California...more

Jones, Skelton & Hochuli Reporter - Summer 2015

- In this Issue: - Has Exposure to Punitive Damages Increased in Arizona? - The Different Warranties Covering A Contractor’s Work - The Frustrating EEOC Conciliation Process - Demanding Access to...more

California’s Highest Court Refuses to Review Denial of Coverage Under Contamination Products Insurance Policy for Ground Beef...

On May 20, 2015, the California Supreme Court denied Windsor Food Quality Company, Ltd.’s (Windsor’s) petition for review of the decision of the Court of Appeal for the Fourth Appellate District of California that denied...more

Business Litigation Reporter - May 2015

Lawsuit Dismissed Where Defendant Hulu Did Not “Knowingly” Disclose Personal Identifying Information. In In re: Hulu Privacy Litigation, 2015 WL 1503506 (N.D. Cal. March 31, 2015), the plaintiffs alleged that Hulu had...more

Merkens v. Federal - Injured Worker Who Failed To Challenge Termination Of Workers’ Comp Benefits In Industrial Commission Cannot...

The court of appeals affirmed. A workers’ compensation carrier can commit the tort of bad faith in two ways: (1) the intentional and unreasonable denial of a claim (“bad faith denial of benefits”); or (2) the intentional and...more

Georgia Court: Policy Does Not Require Insured to Produce Recordings of Her Conversations With the Carrier

On May 20th, a federal court in Georgia held that the standard “requirements in case of loss” language compelling the insurer to turn over her books and records during the adjustment process did not require the production of...more

Arizona Reduces Punitive Damages in Insurance Bad Faith Case Again: Arellano v. Primerica Life Insurance

In Arellano v. Primerica Life Insurance Company, 235 Ariz. 371, 332 P.3d 597 (App. 2014), despite finding an insurer’s conduct moderately to highly reprehensible, the Arizona Court of Appeals recently reduced a punitive...more

Don't bet on bad warnings

It may be obvious, but employers should neither issue nor rely upon a written warning made in bad faith. It is equally plain that any written warning issued in bad faith should not be used to dismiss an employee. Otherwise,...more

Delaware Supreme Court Preserves Benefit of Exculpatory Provisions for Independent Directors at Motion to Dismiss Stage

A recent decision by the Delaware Supreme Court provides independent directors, such as special committee members, with the ability to escape protracted fiduciary duty litigation during its initial stages. The court’s...more

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