News & Analysis as of

Bad Faith

Ropers Majeski

When an Insured Misrepresents the Value or Quantity of Stolen Property: Legal Standards and Practical Considerations

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Misrepresentation of the value or quantity of allegedly stolen property remains one of the most litigated issues in first-party property insurance claims. ...more

Knobbe Martens

Trademark & Brand Protection Update | February 2026

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While the UDRP can be a fast and cost effective way to recover domain names registered in clear bad faith, it may not succeed in disputes involving legitimate competing rights, complex business relationships, or unresolved...more

Dinsmore & Shohl LLP

Ohio Supreme Court Clarifies Attorney-Client Privilege in Insurance Bad-Faith Cases

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On February 26, 2026, the Supreme Court of Ohio issued its opinion in Eddy v. Farmers Property Cas. Ins. Co., clarifying when an insurer is entitled to assert the attorney-client privilege and work-product doctrine in bad...more

Thompson Coburn LLP

Fourth Circuit Affirms Denial of Stay Relief in Herlihy v. DBMP, LLC

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On February 11, 2026, a split panel of the U.S. Court of Appeals for the Fourth Circuit affirmed the lower courts’ decisions that denied motions of asbestos claimants to lift the automatic stay in the bankruptcy case of DBMP,...more

Cranfill Sumner LLP

When Advocacy and Ethics Collide: Two Recent North Carolina Decisions on Attorney Disqualification

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Two recent North Carolina decisions, Sloan‑Oudeh v. State Farm Fire & Casualty Co. (N.C. Ct. App. Feb. 18, 2026) and WP Church, LLC v. Whalen (2026 NCBC Order 10) offer timely and instructive guidance on attorney...more

Wiley Rein LLP

Seventh Circuit Holds Excess Insurer has Right but Not Duty to Attend Mediation Before Primary Coverage is Exhausted

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The U.S. Court of Appeals for the Seventh Circuit, applying Indiana law, held that an excess liability insurer did not breach any duty where it refused to defend an insured or attend mediation on behalf of an insured where...more

K&L Gates LLP

Oh My Word(le), New York Times Succeeds in Invalidating UK WORDLE Trade Mark Without a UK Trade Mark of Its Own

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A significant risk that brands fear is that others may file their trade mark first in a new market, as most trade mark systems operate under a ‘first to file’ approach. Brands can therefore be comforted by the UK Intellectual...more

Phelps Dunbar

GA Court of Appeals Pushes Back Against “Byzantine” Time Limited Demands Under O.C.G.A. § 9-11-67.1

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The Georgia Court of Appeals issued an important ruling for insurers and claims professionals, addressing the practice of using time-limited settlement demands under O.C.G.A. § 9-11-67.1. In Gomez et al. v. USAA Casualty...more

Houston Harbaugh, P.C.

Pennsylvania Supreme Court Holds That Pennsylvania’s Bad Faith Statute Does Not Apply To Surety Bonds

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Pennsylvania’s bad‑faith statute, 42 Pa. C.S.A. § 8371, permits insureds to recover certain damages in “action[s] arising under an insurance policy … [if] the insurer has acted in bad faith towards the insured ….” In Eastern...more

Cozen O'Connor

Indiana Recognizes Interpleader as a Bad‑Faith Safe Harbor

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The Indiana Supreme Court’s decision in Baldwin v. Standard Fire Ins. Co., 269 N.E.3d 1197 (Ind. 2025) provides clarity for insurers confronted with competing claims that exceed policy limits. In a matter of first impression,...more

Ice Miller

Employee Struggling Physically or Acting Strangely? Fitness-For-Duty Exams Are Defensible if You Follow the Legal Standard

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The Americans with Disabilities Act (ADA) prohibits employers from making disability inquiries or requiring employees to undergo medical examinations unless they show the inquiry or examination to be job-related and...more

Orrick, Herrington & Sutcliffe LLP

Judge trims mortgage lender’s fraud suit against title insurer, allows key claims to move forward

On February 9, the U.S. District Court for the Western District of North Carolina granted in part and denied in part a title insurer’s motion to dismiss in a real estate fraud case, where a mortgage lender alleged it suffered...more

Marshall Dennehey

Ohio Supreme Court Enforces Broad Arbitration Clause in Insurance Policy, Extending to Bad Faith Claims

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U.S. Acute Care Solutions, L.L.C. v. Doctors Company Risk Retention Group Insurance Company, --- N.E.3d ---, 2025-Ohio-5010 (Ohio 2025) - In this medical malpractice lawsuit filed against an emergency services provider, the...more

Constangy, Brooks, Smith & Prophete, LLP

Bad luck for this employer with separation agreement

But, then, don't we make our own luck? Happy Friday the 13th, aka Valentine’s Day Eve. I don't love what this employer did, so I'm going with Friday the 13th. A legal assistant in Santa Fe, New Mexico, who was...more

Freeman Mathis & Gary

2025 FMG Insurance Coverage Annual Report

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A summary of the year’s important insurance coverage and extra-contractual cases within FMG’s footprint across the country. State Farm Automobile Ins. Co., v. Orlando - In vacating the Court of Appeals’ opinion, the...more

King & Spalding

Southern District of New York Rules That Lender’s Alleged Bad-Faith Failure to Engage with Borrowers’ Proposed Collateral Sales...

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On December 16, 2025, the U.S. District Court for the Southern District of New York granted summary judgment on liability in favor of lender Jasper Lake Ventures Two LLC, holding that its alleged refusal to engage with...more

Wiley Rein LLP

Delaware Court Finds a Meaningful Link Where Notice of Circumstances and Later Claim Allege Same Underlying Conduct

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The Superior Court of Delaware, applying Delaware law, has held that there was a meaningful link between a notice of circumstances and a later claim where the circumstances described in the notice “allege[d] the same...more

Zelle  LLP

AI Tools and Bad Faith Risk in Insurance Claim Handling: Lessons from Lokken

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Artificial intelligence (AI) is increasingly used in claims handling through predictive analytics, automation, fraud detection, and cost estimation. While these tools provide speed, consistency, and accuracy, they also raise...more

Smart & Biggar

Canadian trademark law 2025: a year in review

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2025 marked a year of adaptive reform in Canadian trademark law. Decisions, legislative updates, CIPO initiatives, and procedural enhancements collectively show the system continuing to mature in the wake of the 2019...more

Rivkin Radler LLP

January 2026 Insurance Update

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Claims-made policies have automatic extended reporting periods that last for a stated amount of time. But those extensions end if the insured purchases a new policy. What if the new policy does not cover the claim? Is the...more

Sands Anderson PC

AI in Claims Processing: What It Means for Bad Faith Litigation

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Many insurance companies are moving quickly to incorporate advanced forms of AI into their processes.  Last year, 90% reported they were evaluating whether and how to utilize generative AI, and more than half said they had...more

Hinshaw & Culbertson - Insights for Insurers

2025 Key Insurance Developments and Trends for 2026

In 2025, Hinshaw’s global insurance services team authored several resources on key developments and decisions that impacted the US insurance industry. From our timely commentary just published in Mealey’s to the third...more

White and Williams LLP

Massachusetts Nuclear Verdict Leads To $90M Bad Faith Award

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Insurers in Massachusetts have long struggled with the demands of MGL ch. G.L.c 176D, § 3(9)(f), which requires “prompt, fair and equitable settlements of claims in which liability has become reasonably clear.” Last month a...more

Cozen O'Connor

From Dock to Doorstep: Exploring Good and Bad Faith Across Land and Sea

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Insurance law is, at its core, a law of relationships. Whether land-based or maritime, every policy rests on an expectation of honesty, transparency, and fairness. Yet the way the law defines good faith—and the consequences...more

Bradley Arant Boult Cummings LLP

Insurance – Texas Style, Part 2: Stowers Liability and Bankruptcy

This is the second in a series of discussions about insurance issues unique to the Lone Star State. Both bankruptcy and the ability for a policyholder to assign its first-party, bad-faith claim against its insurer can be...more

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